Michael Burry, the renowned US hedge fund manager portrayed in "The Big Short", maintained his bearish stance even as the S&P 500 hit a record high. He warned that the current rally could ultimately end in a collapse similar to the 1987 stock market crash.

Although new highs in the S&P 500 may attract fresh capital into the market, he still believed US stocks are approaching a major peak and could experience a plunge similar to that seen in 1987.

Supported by corporate earnings beat and growing hopes that the Strait of Hormuz will reopen, US stocks stretched upswing for a fourth consecutive trading day overnight (4th), with the three major indices mounting nearly 2% or more. Both the DJIA and the S&P 500 notched fresh intraday and closing highs.

Burry believed demand for AI infrastructure may be driven by unsustainable financing arrangements. He said the market rally is creating a self-reinforcing cycle, while lower volatility is encouraging systematic investors to increase risk exposure.

He emphasized that he will continue to hold short positions in iShares PHLX SOX Semiconductor Sector Index Fund (SOXX.US), Micron Technology, Inc. (MU.US), NVIDIA Corporation (NVDA.US), Caterpillar, Inc. (CAT.US), Palantir Technologies Inc. (PLTR.US), Tesla, Inc. (TSLA.US) and Applied Materials, Inc. (AMAT.US), and remains highly confident about the long-term outlook for these positions.

However, he would cut losses promptly if the trades move significantly against him. Apart from the short position in NVIDIA, all other positions currently remain profitable.
~

AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
MU (P)	11114	400 (-)	0.270	2.8 X
Nvidia (C)	11185	275 (-)	0.139	6.6 X
Nvidia (P)	11090	168 (-)	0.106	5.1 X
PLTR (C)	11130	200 (-)	0.083	7.3 X
PLTR (P)	11131	140 (-)	0.240	3.0 X
TSLA (P)	11135	330 (-)	0.680	3.2 X