According to Michael Burry's article on Substack, on May 12th, he warned that the Nasdaq 100 index may experience a sharp reversal due to overvalued technology stocks, with a current P/E ratio of about 43 times, far above the reasonable level of 30 times. He compared the market to the high point before the bursting of the Internet foam, especially the recent surge in chip stocks. The Philadelphia Semiconductor Index has risen nearly 70% since the end of March. Burry stated that Wall Street overestimated the profits of high growth companies by 50% and described the current situation as' the last few minutes before a bloody car accident '. He suggests not shorting stocks because put options have high costs and high risks.
