Michael Burry warns of market crash even bigger than 2000's dot-com bubble
Michael Burry—the guy who called the 2008 housing crisis—now says the US stock market could face a crash worse than the dot-com bust.
He warns that when the market goes down, the whole thing could come down, blaming risky AI stock hype and too much money in passive funds.
What's got him worried?
Burry points out that over half of US stocks are locked up in passive funds, which means less real oversight and more risk if things go south.
He also thinks companies like NVIDIA and Palantir are way overpriced thanks to AI speculation, and says some firms may be stretching accounting tricks to make profits look better than they are.
What's he doing—and what can you do?
Burry has shut down his hedge fund and is betting against big tech names like NVIDIA and Palantir.
While he doesn't know exactly when a crash might hit, his track record makes people pay attention.
His advice: stay cautious, diversify your investments, and be wary of speculative tech or AI stocks.