Michael Burry is warning that the current lack of volatility in the stock market serves as a major red flag for investors. New research from BTIG strategist Jonathan Krinsky highlights that Wednesday marked the 182nd consecutive trading session without at least 80 percent of New York Stock Exchange volume declining. This streak represents the longest period of market calm in at least thirty years.
Burry, known for his role in The Big Short, suggests that this absence of broad-based selling often precedes a significant market reversal. While he notes that technical factors alone are easy to overlook, he has been warning about the fundamental weaknesses in the market since late 2025. He remains a skeptic of the ongoing artificial intelligence boom and questions the sustainability of current spending levels.
According to the data provided, if the market avoids an 80 percent downside-volume session for the remainder of 2026, it will be the first calendar year in three decades to avoid such an event entirely. Every previous year during this timeframe recorded at least five such sessions.
Burry advises investors to avoid using leverage while waiting for this cycle to play out. He argues that market cycles take considerable time to unfold and that investors often go bankrupt while waiting to be right. His primary suggestion is to avoid the folly of others by maintaining a defensive position and resisting the urge to chase the current rally with borrowed funds.