Michael Burry Returns Warning of Market Bubbles After Two-Year Silence

Michael Burry, renowned for predicting the 2008 subprime mortgage collapse and portrayed in "The Big Short," has resurfaced on social media after nearly two years to issue a cryptic warning about market bubbles. He suggested that while bubbles are visible, sometimes the best strategy is to avoid playing, implying potential overvaluation in current markets. His warning coincides with Nvidia reaching a record $5 trillion valuation amidst the AI investment boom, stirring concerns of an artificial intelligence bubble. Burry has a history of contrarian bets, having previously warned against speculative trading in meme stocks, cryptocurrencies, and passive index funds. He has also taken significant positions in undervalued Chinese tech stocks, including Alibaba, JD.com, and Baidu, likely benefiting from their recent rallies. Burry’s cautionary stance reflects his reputation for identifying market excesses early, though he often refrains from timing the market precisely.