Michael Burry, the investor who predicted the 2008 housing market collapse, has returned to social media after nearly two years, issuing a fresh warning about what he perceives as an emerging market bubble.
On October 30, Burry posted on X for the first time since April 2023, sharing an image of actor Christian Bale, who portrayed him in The Big Short, staring at a computer screen in disbelief.
His accompanying caption read: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
The post, which alludes to the 1983 film WarGames, suggested that Burry believes current market conditions are unsustainably speculative.
His message appears to caution investors that sitting out may be the most prudent move, a stance reminiscent of his contrarian calls ahead of past market downturns.
AI bubble debate
Burry’s comments come amid growing debate over whether artificial intelligence has fueled a new asset bubble.
Notably, the AI-driven rally has propelled tech giants such as Nvidia (NASDAQ: NVDA) to record valuations; the chipmaker’s shares have surged over 1,200% since early 2023, lifting its market capitalization to $5 trillion and pushing the S&P 500 and Nasdaq 100 to fresh highs.
Further emphasizing his outlook, Burry updated his X profile name to “Cassandra Unchained,” a reference to the mythological figure cursed to deliver true but ignored prophecies.
He also changed his header image to “Satire of Tulip Mania,” a painting mocking the 17th-century Dutch tulip bubble, another possible nod to market excess.
Burry’s history lends weight to his warnings. Through his hedge fund, Scion Asset Management, he famously bet against the U.S. housing market ahead of the 2008 crash, earning hundreds of millions. More recently, he has cautioned about speculative frenzies in meme stocks, cryptocurrencies, and high-growth tech shares.
While Burry had turned more bullish earlier this year, shifting from bearish put options to bullish call positions in stocks like Alibaba, JD.com, and Lululemon, his latest post signals renewed concern over froth in financial markets, especially in the booming AI sector.
Featured image via Shutterstock
