Core Insights - Michael Burry, known for predicting the 2008 financial crisis, warns of a potential downturn in the U.S. stock market due to a significant shift in household wealth allocation, with stocks now surpassing real estate [1][2] Group 1: Market Trends - The chart "Exhibit 12," shared by Burry, indicates that U.S. household allocations to equities have recently overtaken those in real estate, marking a significant historical shift [2] - This crossover is described as a high-conviction danger signal that has not been observed in decades, suggesting a potential long-term market decline [2] Group 2: Historical Context - Burry references historical precedents where household stock wealth exceeding real estate wealth occurred in the late 1960s and late 1990s, both of which preceded significant market downturns [3] - The late 1960s crossover led to a decade of stagflation and poor real returns, while the late 1990s instance coincided with the peak of the Dot-Com bubble [3] Group 3: Market Performance - As of 2025, the S&P 500 index has increased by 15.88% year-to-date, the Dow Jones index has returned 13.50%, and the Nasdaq Composite has gained 19.87% during the same period [4] - On a recent trading day, the SPDR S&P 500 ETF Trust (SPY) closed down 0.27% at $678.87, while the Invesco QQQ Trust ETF (QQQ) rose by 0.20% to $611.75 [5]