Legendary investor Michael Berry, immortalized in the 2015 film “The Big Short,” warned his followers on Twitter in one word.

Investor Michael BerryPhoto: Astrid Stawiarz/Getty Images/Profimedia

“Vindeți” wrote this Sunday on the social media platform where he uses the pseudonym “Cassandra”, a reference to a woman in Greek mythology who was given the gift of foretelling the future by the god Apollo but cursed her so that no one would trust her prophecies.

Berry later deleted the post, as he does regularly, but reiterated the importance of the message in a new post with a screenshot of the original post.

Markets Insider notes that Berry is likely urging his followers not to be misled by the new rally in U.S. financial markets, with the benchmark S&P 500 up 6.2% in January and the Nasdaq Composite, which includes many tech stocks, up 11% .

For the Nasdaq Composite, this is the best return registered in the first month of the year since January 2001.

Michael Berry makes a bet against Elon Musk and the ‘Wall Street money tree’

Some of the companies whose market value collapsed last year saw the biggest gains in early 2023. Shares of Elon Musk’s Tesla, for example, rose 41% in January after a historic crash in 2022.

Tesla was the second-best performing company in the S&P 500 in January.

At the same time, investment fund Cathie Wood’s Ark Innovation, which was called the “Money Tree of Wall Street”, recorded January 2023 as the best month in its history. Last year, Wood’s investment fund was one of the hardest hit by Tesla’s downfall.

Scion Asset Management, Berry’s fund, bet last year against both Tesla and Wood’s firm, which invests heavily in technology stocks.

The spectacular stock market decline of many US technology companies in 2022 came after the Fed, the central bank in Washington, raised key interest rates from near zero to more than 4% to reduce historic inflation.

But investors appear to have regained confidence in these companies, believing that recent data on falling U.S. inflation is prompting the Fed to cut key interest rates to try to avoid a recession in the U.S. economy.