Part 4/10:
Burry's choice to exit coincides with concerning trends in U.S. stocks; notably, the S&P 500 has reached peak price-to-earnings (P/E) ratios not seen since the late 1990s—an era marked by the internet bubble bursting. With this level of market concentration, driven largely by a few dominant tech companies, Burry finds the risk-reward ratio unfavorable as a small number of firms account for a substantial portion of market gains.