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

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.

See Also: How To Buy GameStop (GME) Shares

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.

Get Started

Start Futures Trading Fast — with a $200 Bonus

Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection.

Get Started

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.

Read Next: 'The Big Short' Fame's Michael Burry Says 'Glad' He Never Got The Opportunity To Use His Disability 'As An Excuse'