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Michael Burry, the investor who accurately predicted the U.S. housing crash in 2008, is not feeling good about the state of the stock market these days.
The investor, known as the inspiration for the 2015 film The Big Short, which looked at his prediction of the subprime mortgage crisis, has repeatedly stated that the market’s long-running rally is about to end — with a significant decline potentially on the way.
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Burry hasn’t backed away from that warning. Throughout 2026, he has continued making moves that suggest he remains concerned about parts of the market — particularly the surge in AI-related stocks. His latest bearish bets against some high-profile technology names have underscored his belief that investor excitement may have pushed some valuations too far.
But Burry isn’t simply warning about a crash — it’s also leading to blindness. In a recent Substack post (1), he argued that the rush into Artificial Intelligence has caused investors to overlook established companies with strong fundamentals.
He compared the setup to the opportunities he found after the dot-com bubble began to unwind, saying he was “patiently acquiring” companies that the market had moved away from.
In an earlier Substack post, Burry said he felt deja vu when it came to the market (2).
“That I had lived this before suddenly dawned on me,” he wrote (3). “The NASDAQ 100, complete reversal … I am calling something. The market has jumped the shark.”
Part of the reason for his bearishness is the resemblance between today’s market and the final parts of the dot-com bubble. Investors, he added, are ignoring economic data and global events to focus on just one thing instead: AI, in this case.
“Absolutely non-stop AI. Nobody is talking about anything else all day,” Burry wrote after listening to financial radio coverage on a long drive (3).
“Stocks are not up or down because of jobs or consumer sentiment. They are going straight up because they have been going straight up. On a two letter thesis that everyone thinks they understand,” he added, noting that it’s “Feeling like the last months of the 1999-2000 bubble.”
