Michael Burry, known for his role in 'The Big Short,' has raised concerns about the current state of the stock market, pointing to a record 182 consecutive trading sessions without at least 80% of New York Stock Exchange volume declining. This streak, the longest in over 30 years, suggests a lack of broad-based selling that Burry believes could precede a significant market reversal.
He referenced research from BTIG's Jonathan Krinsky, who noted that if this trend continues through 2026, it would mark the first calendar year without such a decline, a stark contrast to the historical norm of at least five such sessions annually.
Burry, skeptical of the sustainability of the AI-driven market rally, cautioned against using leverage, emphasizing that major market cycles can take a long time to unfold and that investors should be wary of getting caught in potential pitfalls. He advised maintaining caution and avoiding leverage to mitigate risks during this uncertain period