Michael Burry is warning investors again as the stock market continues to push higher. Burry, who is best known for predicting the 2008 housing collapse, said in a recent Substack post that equities may be close to an important turning point after a strong rally sent major indexes to new highs. In his view, investor excitement may be running too far ahead of the risks that are still facing the market. Burry wrote that “the market has jumped the shark,” which suggests that sentiment may have become too optimistic.
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Trade SPY with leverageThat warning comes as Wall Street has been rallying on stronger-than-expected corporate earnings and hopes that the U.S. and Iran could reach a diplomatic breakthrough. As a result, investors have been moving back into risk assets in hopes that easing geopolitical tensions and steady economic data will continue to support stocks.
Still, the situation remains uncertain because no formal agreement between Washington and Tehran has been completed. That leaves potential risks around energy markets, inflation, and global stability. Interestingly, Burry has made similar warnings in recent years about high valuations and speculative behavior, even though stocks have continued climbing.
Is SPY Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SPDR S&P 500 ETF Trust (SPY) based on 415 Buys, 80 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $857.03 per share implies 16% upside potential.
