EXCLUSIVE: Was Michael Burry Actually Wrong When He Advised To Sell? Benzinga PremarketPrep Opinions

Professional trader and CFA charterholder Dennis Dick appeared on Benzinga Premarket Prep on Friday and reiterated a pessimistic view of the stock market, arguing that Big Short's investor Michael Bury was actually right in his recommendation to sell.

"I still think there are some troubles ahead," the investor said. "I don’t have the crystal ball, but stocks aren’t cheap, there is a geopolitical risk and a lot of banking risk still out there."

As a critique of the bullish thesis, the investor advised looking at the SPDR S&P Regional Banking ETF KRE and considering why it hasn't risen if everything is now safe in the banking system.

The ETF that invests in U.S. regional banks has lost a third of its value since the start of banking turmoil in March and continues to hover around its lows, as the chart below shows. 

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"Money Mitch" Mitch Hoch, a Benzinga Premarket Prep host, said he's currently "neutral to bullish," and pointed out that when the government steps in, it's usually a game changer for the market.

He drew a parallel to the rise in stock prices after the government injected policy stimulus during the Covid crisis.

Joel Elconin, independent equities and futures trader, said that stocks are trading at high valuations and suggested that recent layoffs will eventually start to appear in the unemployment data.

“It will be a question of recession or just a slowdown”, he added.

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