Michael Berry, famous as a “big bear,” insisted on a bearish bet. Even if the S&P 500 soared to a record high, he warned that this round of gains could eventually end in a sharp sell-off similar to the 1987 stock market crash. “I still think we may be approaching a major top and may experience a 1987-style decline, but a new high in the S&P 500 is likely to introduce new capital into the market,” Burry said in a post on the Substack platform on Tuesday. “Remember, when the market rises as volatility declines, it will force volatile target funds to increase leverage, as well as introduce leverage from other momentum strategies,” he wrote. Facing this round of gains, Burry said he continues to hold short positions in the iShares Semiconductor ETF, Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials. The investor said he is still confident about the long-term prospects of these positions, but he added that if the trading trend is clearly unfavorable, he will stop losing money and leave the market. He said that with the exception of shorting Nvidia, all other positions are currently profitable. “Once again, shorting isn't for everyone,” Barry wrote. “I have to go short. Most people shouldn't.”

Michael Berry, famous as a “big bear,” insisted on a bearish bet. Even if the S&P 500 soared to a record high, he warned that this round of gains could eventually end in a sharp sell-off similar to the 1987 stock market crash. “I still think we may be approaching a major top and may experience a 1987-style decline, but a new high in the S&P 500 is likely to introduce new capital into the market,” Burry said in a post on the Substack platform on Tuesday. “Remember, when the market rises as volatility declines, it will force volatile target funds to increase leverage, as well as introduce leverage from other momentum strategies,” he wrote. Facing this round of gains, Burry said he continues to hold short positions in the iShares Semiconductor ETF, Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials. The investor said he is still confident about the long-term prospects of these positions, but he added that if the trading trend is clearly unfavorable, he will stop losing money and leave the market. He said that with the exception of shorting Nvidia, all other positions are currently profitable. “Once again, shorting isn't for everyone,” Barry wrote. “I have to go short. Most people shouldn't.”