Meet Michael Burry - Top US investor who predicted 2008 crash; has a fresh warning!

Who is Michael Burry? America’s famed investor behind ‘The Big Short’ is sounding the alarm again. Michael Burry, famously known as the investor who foresaw the 2008 housing crash. According to a recent CNBC report, Burry is warning that the stock market’s current obsession with artificial intelligence looks like the final days of the dot-com bubble.

What did Burry warn about?

Burry took to Substack to share a stark observation. “Absolutely non-stop AI. Nobody is talking about anything else all day,” he wrote, as quoted by CNBC.

Burry believes the market has simply stopped making sense. He pointed out that stocks are no longer reacting to core economic data. Instead of trading rationally on jobs reports or consumer health, the market is running on blind momentum. 

For example, the S&P 500 surged to a fresh record high on Friday. Traders eagerly latched onto a slightly better-than-expected April jobs report, while completely brushing off a record-low reading in consumer sentiment, the report said.

“Stocks are not up or down because of jobs or consumer sentiment,” he wrote. “They are going straight up because they have been going straight up. On a two letter thesis that everyone thinks they understand. ... Feeling like the last months of the 1999-2000 bubble.”

To make his case, Burry compared the recent explosive growth of the Philadelphia Semiconductor Index (SOX) to the historic run-up right before tech stocks collapsed in March 2000. 

“The comments come as investors have poured into AI-linked shares over the past two years, helping propel major U.S. equity indexes to repeated record highs,” CNBC added.