“The end of\u2026this\u2026is nigh.”<\/p>\n
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That’s the warning from “The Big Short Investor” Michael Burry<\/a>, “this” being the stock market’s blistering rally to record after record in recent weeks. <\/p>\n Burry said he believes the market could finally be on the edge of the\u00a0major decline<\/a>\u00a0he’s been warning about, telling readers of his Substack in an early morning post on Monday that history seems to be repeating itself. <\/p>\n “With what is happening in the market the last week, that I had lived this before suddenly dawned on me,” he wrote. “The NASDAQ 100, complete reversal.”<\/p>\n The former Scion Asset Management chief pointed to the major rally in recent weeks, with the indexes climbing higher on strong earnings and optimism for a peace deal with Iran<\/a>, even with no agreement yet in sight. <\/p>\n “I am calling something. The market has jumped the shark,” Burry wrote, later speculating that the conflict with Iran, the recent surge in oil prices, or a potential contagion event in private credit<\/a> could all be triggers to a coming decline.<\/p>\n Burry pointed in particular to the tech and semiconductor sectors, which have been on a tear amid fresh dealmaking and strong earnings over the past month. The iShares Semiconductor ETF<\/a> is up 65% year-to-date, marking one of its best-ever rallies<\/a>.<\/p>\n The Nasdaq 100<\/a> is up 16% in the last month alone. <\/p>\n In a post last week, Burry flagged an analysis from analysts at BTIG that showed the market, by some metrics, has eclipsed dot-com era moves. According to the analysis, the top 10 performers in the Nasdaq 100 were up an average of 784% over the past year. That compares to the average 622% gain across the top 10 performers in the year leading up to March 2000, the month before the dot-com bubble<\/a> began to deflate.<\/p>\n The former hedge funder pointed to several charts that showed the “complete reversal” of the major stock indexes following the dot-com bubble and in 1929, labeling each peak with “You are here.”<\/p>\n The market environment looks “so familiar” to the months leading up to the dot-com bust, Burry added, suggesting that investors consider selling high-momentum stocks or reducing their exposure to the tech sector<\/a>.<\/p>\n He added he had taken “significant” leveraged short positions against a portfolio of companies he believed were “depressed and cheap,” which is what he had done prior to the market crash in the early 2000s.<\/p>\n “My only thought now, this weekend, today, is to let people know where we are. We are witnessing history. In the stock market, that is not a good thing,” Burry said.<\/p>\n Burry acknowledged his reputation as “the boy who cried wolf” in markets, referring to his long history of making bearish calls on the market. <\/p>\n