Investing Legend Michael Burry: Stock Market “Jumped The Shark”

• Michael Burry, the expert investor and inspiration for “The Big Short,” is bearish on the current state of the stock market
• Burry is worried that the present day stock market is giving him Deja Vu of 2008, when the housing crash trampled the US economy.
• The Big Short Investor also believes the AI bubble will burst eventually, causing a huge stock selloff.

Michael Burry, the stock market legend who predicted the 2008 housing crash, has issued his two cents on the current state of the markets. The “Big Short” investor is bearish about the state of the stock market these days, speaking out on his bearish view of today’s stock market. Comparing the present day to 2008 in a post on Substack, Burry said he was having a major feeling of deja vu when it came to the market.

Also Read: Elon Musk vs Sam Altman: OpenAI CEO Testifies in Lawsuit

Michael Burry’s Bear Case for Present Day

Burry believes the market’s ongoing rally is about to end and a significant decline could be on the way.

“With what is happening in the market the last week, that I had lived this before suddenly dawned on me,” he wrote. “The NASDAQ 100, complete reversal… I am calling something. The market has jumped the shark.”

In addition, Burry believes the AI-fueled rally in Big Tech stocks is propped up by aggressive accounting practices and built on data center infrastructure that nobody has figured out how to fully monetize. Big tech companies like Alphabet (GOOGL) and Amazon (AMZN) are spending billions in Capex on AI developments.

Also Read: RocketLab (RKLB) Stock Surges 15%: How Space Stocks Benefit From Upcoming SpaceX IPO

Furthermore, Michael Burry isn’t the only stock market veteran who is warning of a forthcoming correction. Last week, billionaire investor Paul Tudor Jones told CNBC that he felt the current environment on Wall Street felt a lot like 1999, the last strong year before the dot com crash. While Jones said he expects the current rally to last another year or two, he worries about how high valuations might rise in that time.

How the Stock Market is Looking Today: Is a Potential Crash Inbound?

The rally in tech stocks slowed on Tuesday thanks to a CPI report that reveals inflation is still alive and well. As reported by Blocknow earlier Tuesday, the Consumer Price Index rose 3.8% in April, compared with expectations for a rise of 3.7%. As a result,The Nasdaq Composite (^IXIC) led losses, tumbling roughly 0.7%. Meanwhile, the S&P 500 (^GSPC) shed more than 0.1% after the two indexes notched record closing highs. The Dow Jones Industrial Average (^DJI), which includes fewer tech names, rose 0.1%.

With interest rate decisions up for debate, US President Donald Trump is also arriving in China shortly. His summit with Chinese President Xi Jinping will surely affect stocks back home, especially with US tariffs expected to be on the menu for discussion. Should talks between the two leaders not go well, the US stock market could witness further decline by the time Trump returns to the US. Further, escalating tensions between the US and Iran still have investors on edge, making the US stock market extremely volatile.

Also Read: Anthropic Pre-IPO Value Tops $1.4T: Bigger Than SpaceX?