Fearless of the surge in technology stocks! "Big Short" Michael Burry remains steadfastly bearish, warning the US stock market may be approaching a major top

According to Zhihui Finance APP, despite the S&P 500 index reaching another record high, Michael Burry, known as "The Big Short" for his successful prediction of the 2008 financial crisis, remains committed to his bearish outlook and warns that U.S. stocks may be approaching a major top, with the possibility of a significant downturn similar to the “Black Monday” of 1987 in the future.

Burry commented on Tuesday: "I still believe we may be approaching a major top, and that a crash similar to 1987 is possible. Yet, the S&P 500’s continued new highs will likely attract fresh capital into the market."

On Tuesday, the S&P 500 index rose 1.79%, marking its first record closing high since June, driven by stronger-than-expected corporate earnings, heightened expectations for the restoration of shipping in the Strait of Hormuz, and continued declines in oil prices. The tech-heavy Nasdaq Composite gained 2.59%, with a cumulative increase of nearly 5% over the first two trading days this week.

However, Burry remains one of Wall Street’s staunchest skeptics of the AI boom. He believes current demand for artificial intelligence infrastructure investment is largely fueled by financing arrangements that may be unsustainable, rather than being entirely based on healthy fundamentals.

He points out that the current market rally is creating a self-reinforcing cycle: As market volatility decreases, volatility-targeting quant funds passively increase their stock holdings, while other momentum strategy funds further leverage up, continuing to push the market higher.

Burry stated: "Remember, when the market keeps rising as volatility drops, it forces volatility-target funds to add leverage, while also attracting more momentum-driven capital into the market."

Despite the ongoing rebound in U.S. stocks, Burry continues to maintain multiple short positions, including shorting semiconductor ETF (SOXX.US), Micron Technology (MU.US), Nvidia (NVDA.US), Caterpillar (CAT.US), Palantir (PLTR.US), Tesla (TSLA.US), and Applied Materials (AMAT.US).

He also indicated that if a trade moves clearly against his judgment, he will choose to stop losses and exit. Currently, most of his short positions remain profitable, with only the Nvidia short still at a loss.

For ordinary investors, Burry specially reminded that short selling is not suitable for everyone. He said: "I have to short, but most people shouldn’t."