Jeff Bierman Sees a Flash Crash Looming After Calling the Bottom

​The trader who nailed the S&P 500’s recent bottom is now sending out a very different message: beware the next crash. After watching the index rebound to around 5,800, market strategist Jeff Bierman says he wouldn’t be surprised if the rally stalls—or even reverses violently.

In fact, he’s warning of a potential flash crash, similar to the kind seen in 2009, fueled by thin liquidity, policy uncertainty, and investor overconfidence.

A Market Built on Shaky Ground
This year’s rally has been impressive, but Bierman sees major cracks forming. Liquidity, he argues, is drying up fast. With many large investors rotating into alternative assets like gold, silver, and bitcoin, and others sending money overseas, there simply aren’t enough buyers left to support another big move up.

Add in unpredictable White House policy, a volatile global trade environment, and a still-hawkish Fed—and Bierman believes the conditions are right for a sudden, violent sell-off.

The Numbers Behind His Caution
The S&P 500's recovery from 4,800 to 5,800 fits a textbook Fibonacci retracement. But Bierman says if it can’t break decisively past 5,900, the index could easily drop back to 5,200, or even retest the 4,800 lows. For that rally to stick, the market needs strong catalysts: a clear path to rate cuts, falling inflation, and a softening on tariffs.

Right now, he argues, none of those are guaranteed.

Where He's Investing Now
Despite his concerns, Bierman isn’t pulling all the way out. He’s leaning into financial stocks like JPMorgan, Goldman Sachs, Visa, and Mastercard—names he says are undervalued and less exposed to trade disruptions. He’s also favoring big pharmaceutical companies and select discount retailers.

On the flip side, he’s steering clear of companies he sees as overpriced or overhyped: Walmart, Costco, and many of the AI-focused stocks that have seen outsized gains.

He’s also stepping back from semiconductors—with the exception of a few names like On Semiconductor, Western Digital, and Dell where he still sees value.

Smart Money Moves
His core advice to investors? Trade small. Don’t bet big. Diversify. He recommends tilting toward short-term bonds, dividend-paying large caps, and staying far away from high-risk, high-volatility plays—at least for now.

Bottom Line
​After calling the bottom earlier this year, Bierman now sees a market skating on thin ice. Whether or not a flash crash hits, he says this is a time for discipline, not euphoria. The rally may not be over—but the easy money likely is.