Michael Burry Notes Rising S&P 500 Price-To-Sales Ratio - SPDR S&P 500 (ARCA:SPY)

The “Big Short” fame investor Michael Burry put out a tweet Monday night containing a chart that tracks the rising S&P 500 price-to-sales ratio.

What Happened: Burry said in his tweet, “Nigh perched with a multiple problem," before deleting it.

Why It Matters: A low price-to-sales ratio implies the underlying asset is undervalued, while a higher than average ratio indicates that the asset is overvalued.

While on Dec. 31, 2008, the S&P 500 price-to-sales ratio was 0.87 — by April 1, 2022, it had risen to 3.07.

Burry is a well-known short-seller and has bet against market darlings like Tesla Inc TSLA in the past.

The Scion Capital founder said last year that he put GameStop Corporation GME on the radar of retail investors.

Price Action: The SPDR S&P 500 SPY closed 1.7% lower at $440.12 on Monday, according to data from Benzinga Pro.

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'The Big Short' Fame's Michael Burry Takes Note Of Rising S&P 500 Price-To-Sales Ratio

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