The Economic Times·2025-11-03 20:44Core Viewpoint - Michael Burry, known for predicting the 2008 housing crash, has resurfaced on social media to warn about a potential stock market bubble, particularly in the artificial intelligence sector [2][11]. Group 1: Market Speculation - Burry's recent post suggests he perceives dangerous levels of speculation in today's markets, especially regarding artificial intelligence, indicating that abstaining from investment might be the wisest choice [6][11]. - Major tech stocks have experienced significant increases, with Nvidia rising over 1,200% since the beginning of 2023, reaching a market value of $5 trillion, contributing to new highs in the S&P 500 and Nasdaq 100 [6][11]. Group 2: Burry's Social Media Activity - Burry changed his profile name to "Cassandra Unchained," referencing a Greek mythological figure known for making true predictions that go unheeded, and updated his bio to reflect his readiness to share insights [7][12]. - His header image now features a satire of Tulip Mania, highlighting historical market bubbles [7][12]. Group 3: Historical Context and Predictions - Burry has a history of making contrarian calls, having successfully predicted the US housing collapse, and has warned about various market excesses over the years, including meme stocks and cryptocurrencies [8][12]. - In 2021, he referred to the current market conditions as the "greatest speculative bubble of all time in all things" [8][12]. Group 4: Recent Investment Strategy - Earlier in 2023, Burry's hedge fund shifted from bearish positions to bullish call options on several stocks, indicating a more optimistic outlook on the market [10][12]. - By mid-2024, Scion Asset Management held 15 positions, including call options on companies like Alibaba and JD.com, as well as direct stakes in Estée Lauder and Lululemon [10][12].