Trending Now - Michael Burry Warns of Potential Major Stock Market Reversal
WHO:
CNBC - Michael Burry, investor known for predicting the 2008 housing collapse.
Business Insider - Michael Burry, former Scion Asset Management chief.
WHAT:
CNBC - Burry stated, "For any stocks going parabolic reduce positions almost entirely."
Business Insider - Burry warned that "the end of…this…is nigh," referring to the stock market's rally.
Business Insider - Burry noted that the iShares Semiconductor ETF is marking one of its best-ever rallies.
Business Insider - Burry highlighted that the top 10 performers in the Nasdaq 100 were up an average of 784% over the past year, compared to 622% in the year leading up to March 2000.
Yahoo Finance - Burry expressed that "Absolutely non-stop AI. Nobody is talking about anything else all day," regarding the current market focus.
CNBC - Burry urged investors to reduce exposure to surging technology stocks.
CNBC - Burry stated, "An easier way for most is to simply reduce exposure to stocks, to tech stocks in particular."
CNBC - Burry compared the current market environment to the final stages of the dot-com bubble.
Business Insider - Burry warned that the stock market could be on the edge of a major decline.
Business Insider - The iShares Semiconductor ETF is up 65% year-to-date.
Business Insider - The Nasdaq 100 is up 16% in the last month.
Business Insider - The top 10 performers in the Nasdaq 100 were up an average of 784% over the past year.
WHERE:
CNBC - The context of the stock market rally is in the United States.
WHEN:
CNBC - Burry made his comments in a Sunday Substack post.
Business Insider - Burry's early morning post was on a Monday.
WHY:
Yahoo Finance - Burry criticized that investors are ignoring economic data and global events, focusing solely on AI.
CNBC - Burry believes the current market environment has reached historically dangerous extremes.
Business Insider - Burry suggested that the market's rally is driven by strong earnings and optimism for a peace deal with Iran.
HOW:
CNBC - Burry cautioned that "shorting is not the answer" and that it is "expensive, in general, to buy put options."
CNBC - Burry is maintaining "a significant leveraged short position" against a portfolio of companies he views as depressed and cheap.
Business Insider - Burry pointed to charts showing the "complete reversal" of major stock indexes following the dot-com bubble and in 1929.
(UPDATED May 12, 2026 01:31 UTC)
Michael Burry has issued a stark warning about the stock market's current rally, stating that investors should significantly reduce their positions in stocks that are skyrocketing. He pointed out that the iShares Semiconductor ETF is experiencing one of its best rallies ever, while the top ten performers in the Nasdaq 100 have surged an average of 784% over the past year, a stark contrast to the 622% increase seen leading up to March 2000. Burry also criticized the focus on artificial intelligence, suggesting that investors are overlooking critical economic data and global events, and he cautioned that shorting stocks may not be the solution, as it can be costly to buy put options.
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(UPDATED May 11, 2026 19:32 UTC)
Investor Michael Burry, known for predicting the 2008 housing collapse, has urged investors to reduce their exposure to surging technology stocks, warning that the stock market may be on the brink of a major decline. In a recent post, Burry compared the current market environment to the final stages of the dot-com bubble, highlighting that the iShares Semiconductor ETF is up sixty-five percent year-to-date and the Nasdaq 100 has risen sixteen percent in the last month. He is maintaining a significant leveraged short position against companies he considers undervalued, while pointing to historical charts that illustrate the dramatic reversals of major stock indexes after previous market bubbles.