For individual investors, Burry’s moves shouldn’t be interpreted as a directive to sell AI stocks or rush to buy puts immediately. The market can remain irrational longer than investors can remain solvent, as the famous saying goes, and put options have expiration dates that add timing pressure to the equation. As the founder of Scion Capital, he was one of the first investors to recognize the systemic problems in the housing market.

• Now, I think the whole thing is just going to come down, and it will be very hard to be long stocks in the United States and protect yourself.
• Since then, stocks have rebounded and resumed a broadly upward trajectory, punctuated by brief, intermittent pullbacks within the larger uptrend.
• The Scion Asset Management chief sounded the alarm in 2021 on the "greatest speculative bubble of all time in all things" and declared that buyers of meme stocks and cryptocurrencies were barreling toward the "mother of all crashes."
• Spot platinum was up 2.1% to $2,272.55 per ounce after hitting an all-time high of $2,918.80 on 26 January, while palladium added 0.7% at $1,787.55.
• Burry’s position, now public knowledge, faced intense scrutiny, with short sellers collectively losing billions.

The Latest 13f Filing Revelation

As a consequence of this Michael Burry of The Big Short fame has been warning that the crypto crash may have been causing more problems for the economy as investors might be selling off other assets to cover their positions. During his interview with Lewis, Burry said he shut down Scion because he is worried about the stock market, which he believes could experience a prolonged downturn, a scenario he doesn't want to have to relive while running a fund with investors. Nobody can know whether more stock market pain lies ahead or the economy is about to tank — but investors have definitely been warned about stormy times ahead. The barrage of bad news has spurred investors to hammer high-flying stocks such as Tesla and Nvidia and virtually erase the main US stock indexes' progress since November's election.

The Contrarian’s Playbook For 2024

Today, according to Burry, over half of the money invested in the stock market is passive. Now, Burry seems mainly concerned not just about market froth and excessive exuberance over artificial intelligence, but also the structure of the stock market, which has shifted from more actively managed a few decades ago to being very passive. Even when Burry turned out to be right and made tremendous profits for his investors, during the recent interview, he said that nobody called to apologize, but also that he didn't expect anyone to, either. No longer a fund manager, Burry isn't pulling any punches -- and his warning to Wall Street couldn't be any clearer. Recently, though, Burry has made a big change, shutting down his fund, Scion Asset Management, and launching a Substack newsletter. If stocks plunge and growth tanks, veteran commentators who've been blowing the whistle on sky-high valuations and macroeconomic headwinds might feel vindicated.

Could Passive Investing Make The Next Crash Worse?

Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. But Burry seems to be betting that market psychology and technical patterns can repeat regardless of macro context. Today the market has institutional ETFs, greater liquidity depth, and better regulatory infrastructure. Unlike gold and silver, which have reached all-time highs amid geopolitical tensions and dollar concerns, Bitcoin has completely ignored those traditional catalysts.

• Amid 2022’s bear market—where the S&P 500 fell 20%—Burry ramped up doomsaying in 2022, forecasting “more failures coming” in stocks and banks, with bottoms far off.
• As the founder of Scion Capital, he was one of the first investors to recognize the systemic problems in the housing market.
• According to Precedence Research, the market size is expected to rise to over $850 billion in 2034 from $146 billion in 2024.
• Burry is not the only fund manager to raise this concern, and many of even the best managers say that value investing might be dead, due to this very reason.
• Just as investors can dollar-cost average into a stock or index, you can employ a similar strategy and sell a portion of your gains each month.

Winter Olympics Investigating As Athlete 'immediately' Breaks Gold Medal

Burry’s strategy hinges on put options on the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ), with a notional value of $886 million and $739 million, respectively. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Cost basis and return based on previous market day close. Burry, whose lucrative wager against the mid-2000s US housing bubble was immortalized in the film "The Big Short," is known for making dire predictions and betting against popular assets such as Tesla, Nvidia, Apple, and the S&P 500. The Rosenberg Research president, who in 2007 was labeled the "skunk at the picnic" and "class clown" for predicting a recession that arrived soon after, said to any investor adding risk to their portfolio, "You really need to have your head examined."

The Anatomy Of Burry’s Bearish Play

Burry advised Elon Musk to issue shares at peak prices to lock in gains, implying an imminent correction of 80% or more. He had tweeted months earlier that Tesla’s reliance on regulatory credits masked underlying weaknesses, calling its market cap—then over $500 billion—”ridiculous” and unsustainable. Burry’s fund reportedly navigated the period with selective bets, but his broad alarm proved premature, setting the tone for a string of overlooked uptrends.

Tech Rally Vs Valuation Concerns

When Burry makes a significant move, especially one as concentrated as his current positioning, institutional investors and retail traders alike take notice. He doesn’t follow the crowd and often takes positions that seem counterintuitive to prevailing market sentiment. With approximately $1.1 billion bet against two of the market’s most prominent artificial intelligence stocks, Burry appears to be sounding the alarm on what he may view as the next major market bubble. Michael Burry warns stock market crash worse than 2000 dot‑com surge — AI valuations fuel risk Michael Burry warns the U.S. stock market could face a smartytrade review crash worse than 2000.

• Burry appears to be betting on a major market downturn, while also taking long positions in some companies, as revealed by his latest SEC filing.
• Cost basis and return based on previous market day close.
• He says AI and tech stock valuations are dangerously inflated.
• Exact losses remain undisclosed, but filings suggest heavy writedowns, capping a streak where Burry’s crash calls repeatedly failed and were caught on the wrong side of a bull market repeatedly.
• Burry, whose lucrative wager against the mid-2000s US housing bubble was immortalized in the film "The Big Short," is known for making dire predictions and betting against popular assets such as Tesla, Nvidia, Apple, and the S&P 500.

This isn’t a hedge or a minor contrarian position—this is a concentrated bet that reflects deep conviction about future market direction. Combined, these two positions represent about $1.1 billion in bearish bets, accounting for approximately 80 percent of Scion Capital’s entire portfolio. Burry purchased put options on one million Nvidia shares, valued at approximately $186.6 million, and put options on five million Palantir shares, worth roughly $912.1 million. The filing disclosed that Burry has taken substantial put option positions on Nvidia and Palantir Technologies, two companies at the forefront of the artificial intelligence revolution.