Michael Burry urged investors to scale back exposure to surging technology stocks, saying the current market environment has reached historically dangerous extremes reminiscent of prior speculative bubbles. The famed investor, best known for predicting the 2008 housing collapse, said investors should “reject greed” as enthusiasm around artificial intelligence and momentum-driven trades pushes valuations sharply higher.
“An easier way for most is to simply reduce exposure to stocks, to tech stocks in particular. For any stocks going parabolic reduce positions almost entirely,” Burry wrote in a Sunday Substack post. Burry has been warning for months that the stock market’s AI fixation increasingly resembles the final stages of the dot-com bubble. Last week, he compared the recent trajectory of the Philadelphia Semiconductor Index (SOX) to the run-up that preceded the collapse of technology stocks in March 2000, saying the current environment feels like “the last months of the 1999-2000 bubble.” Burry said he is maintaining “a significant leveraged short position” against a portfolio of companies he views as depressed and cheap, a similar strategy he employed in 2000.
However, Burry warned that directly betting against the rally through short selling is risky and impractical for most investors, particularly as bearish trades have become increasingly expensive. “Shorting is not the answer. It is not something most people should ever do,” he said. “Right now it is expensive, in general, to buy put options and directly shorting stocks can still cause significant pain.”
Michael Burry is not a believer: ‘For any stocks going parabolic reduce positions almost entirely’. Shorting is not the answer.
byu/WickedSensitiveCrew instocks
Posted by WickedSensitiveCrew
31 Comments
Michael Burry has been wrong far more often than he’s been right. He’s a perma-bear, which makes him right occasionally, but not because he’s smart. A broken clock is right twice a day, etc, etc.
This guy again..
Never seen a guy get so much publicity from one call 18 years ago.
Yeah, back during the dot com bubble a lot of people went bankrupt shorting tech stocks because they were over valued. The market can remain irrationally bullish longer than you can remain solvent. that said even Burry or Buffet can be off by years.
I wish I got all kinds of credit as being a guru in something for being right just a single time and wrong every other time.
Take the profit seems ok
Michael Burry has been waiting to buy the dip.
Burry’s main point is underrated: bubbles can last much longer than people expect, and shorting them can destroy you before you’re eventually right.
Dotcom was a real bubble… and it still gave us Amazon, Google and the internet economy. AI could follow the same path.
The hard part isn’t spotting the narrative. It’s knowing how much future perfection is already priced in.
Don’t be a pussy; buy the dip
This isn’t like the dotcom bubble though. These big growth tech stocks aren’t trading at 300x P/E and are achieving real growth + huge order backlogs. Even if the whole LLM/agentic product line constricts as the realities of the economics behind them land there’s still going to be massive demand for data centers and chips, which makes stocks like MSFT, GOOG, AMD, NVDA, and TSMC safe investments.
I’m not selling shit. I’m buying more MSFT and GOOG. I’m buying AAPL as a “hedge.” I’m also researching energy stocks that will benefit from the data center build out. A lot of these are being supported by MW generators from companies like CAT who have years long backlogs that should also be bolstered by climate change concerns.
Bro turned into shilling GME to morons on a paid substack and then sold once it didn’t go how he wanted it go lmaoooo
The fact of the matter is that nobody knows. Stocks could fall tomorrow never recover with CPI who knows or maybe this goes on for another six weeks and then falls out. Buyers will get exhausted at some point in time.
My shorts are getting wrecked, please help me from myself.
Bears are wrong so often that the one time they were right, they made a movie about it.
Imagine how much it rips when peace deal is signed
That’s my cue to buy…
The guy is an eternal bear but I tend to agree with him here. I had been keeping a fairly large cash pile(larger than I usually do) in my brokerage acct from about Oct to ~2 months ago, then started buying some stocks. Some of them the hype darlings mentioned here. Almost everything I’ve bought has been making gains, some quite a bit.
Really seems way too easy and the other shoe will drop at some point. Not necessarily a full scale dot com crash but stocks will pull back and people will get burned, especially the ones running like mad. When will it be it’s true nobody knows but here’s way too much unbridled optimism right now
It has become accepted wisdom that a crash is coming. But the million dollar question – LITERALLY, since millions of $ are potentially at stake – is how long will it keep going up until it does crash?
In a sense this kind of analysis is not informative at all. Everybody knows a crash will happen, because the alternative is that the markets will never crash again which doesn’t seem likely. So a crash is definitely coming at some point, but how far away it is is extremely important when deciding what to do about it. If my YOLOing my retirement fund into QQQ results in a 200% gain before the next crash which slices a whole 50% of the market – guess what, I still doubled my money.
If these market analysts want to make themselves actually useful then they can tell us when the crash is coming, please and thank you!
That guy is so boring already. He sets the expectations based on historical truths based on numbers while ignoring new truths. He understands technology and AI from only surface level.
We are still far from bubble bursting and there is a shit ton of money to be made still. While the venture capital scene is pouring money on startups and AI companies, the party resumes.
Look at Tesla in 2020. it went parabolic. Did it give back some gains? yes it did “digest” for a few years. But it never crashed.
He has a short position against companies he views as cheap? I’m confused
guess right one time and now he’s the guru of the stock market
Can we short Burry?
I trust him and Warren, you gamblers on the other hand will probably make money buying TSLA and spacex at 400+ P/E and will probably make money, you do you but don’t pretend this shit is normal
“The famed investor, best known for predicting the 2008 housing collapse…”
I think they meant ONLY KNOWN FOR
One of the huge barriers for internet adoption was the distribution. It took years and years for people to eventually get on board with the internet. I would argue that the internet did not realize it’s potential until the introduction of the Iphone.
With AI, there is much less friction. Everyone has a computer. Everyone has a smartphone and has downloaded chatgpt or gemeni. Claude Opus has shown that if you give businesses a product that just works, they will adopt it. Give them something that works, no matter the cost. Make them addicted. Then cut back on usage and force businesses to optimize the cost themselves.
-*don’t buy stocks that are already parabolic
don’t worry i can’t afford that
“Hype the fuck out and buying everything right now. This is the fucking moonshot.” – Warren Buffet
Michael Burry responded to my craigslist ad looking for someone to mow my lawn. “$30 is $30”, he said as he continued to mow what was clearly the wrong yard. My neighbor and I shouted at him but he was already wearing muffs. Focused dude. He attached a phone mount onto the handle of his push mower. I was able to sneak a peek and he was browsing Zillow listings in central Wyoming. He wouldn’t stop cackling.
That is to say, Burry has his fingers in a lot of pies. He makes sure his name is in all the conversations.
Where was he before they were going parabolic? Still shorting? 🤔
He’s not wrong, it’s the market that’s wrong!