Investor Michael Burry, famous for his short bets, predicted that consumer spending in the U.S. will fall sharply while retailers’ warehouses will be swamped with excess inventory by Christmas. Moreover, he called the recent recovery in the stock market a temporary respite, and said that a downturn in the market should not be expected until investors give up holding shares of tech firms, cryptocurrencies and non-mutualizable tokens, writes Business Insider.

Michael Burry, a Scion hedge fund manager who managed to predict ahead of time and profit from the collapse of the U.S. housing bubble, inadvertently paved the way for the meme stock boom by investing in GameStop (NYSE:GME), and betting against Ilon Musk’s (NASDAQ:TSLA) Tesla and Katie Wood’s Ark Invest last year.

Burry’s view that the market has bottomed out is echoed by Tom Siebel, billionaire programmer and CEO of Siebel Systems:

“I don’t think it [the decline] will end until everyone promises to never own NFTs, cryptocurrencies and tech stocks.”

Burry relayed this quote in a tweet over the weekend and said that widespread investor apathy caused previous market downturns in 2002, 1932, and 1974.

Burry also pointed to a 1974 New York Times article that emphasized the lack of sympathy ordinary Americans have for Wall Street stockbrokers.

The hedge fund manager has already warned that asset prices may not peak until next year at the earliest, given the duration of the recent bull market.

The investor seems to be expecting a decline in American consumer spending to slow economic growth by the end of this year, and the combination of weakened demand and retailers’ bloated inventories could keep inflation in check.

He said earlier that U.S. households, faced with soaring food, fuel and housing prices, could deplete almost all of their savings by the fourth quarter of this year, which would be the reason for weakening consumer demand. Other harbingers of a consumer downturn and pressure on corporate earnings will be declining savings rates and ballooning credit card debt. Burry also cautioned investors against getting too caught up in stock rallies, saying the market has seen dozens of similar sharp rallies during previous downturns.

The Scion chief has previously suggested the S&P 500 could fall 52% from its current level to 1,862 points, based on the benchmark index’s performance in past bear markets.