🇺🇸 Michael Burry warns about the risks of a crash in the US stock market, potentially worse than the 'dot-com bubble' 📉
The renowned financier who predicted the 2008 crisis expressed serious concerns about the overheating of the AI companies segment and structural changes in the market.
💡 Key points of the warning:
Revaluation of AI companies: Stocks of corporations related to artificial intelligence are rising on expectations rather than sustainable fundamental indicators. Burry compares the current multiples of several issuers with the levels at the end of the 1990s, and they turn out to be higher!
Risks of passive investments: Index funds and ETFs control over 50% of the US stock market. Such concentration reduces active analysis and can significantly amplify price declines during market stress.
Questionable reporting: Some tech companies are extending the amortization periods for AI equipment, which may distort reported earnings and real financial stability.
🐻 Burry's actions:
To support his words, Michael Burry closed his hedge fund and formed bearish (short) positions against large tech companies focused on AI, signaling expectations of high volatility.
⚠️ Important:
Burry does not specify an exact date for the crash. His warning concerns systemic factors that could lead to a significant correction.
"Investors should consider these features when evaluating their own portfolios."
Source: Economic Times
What do you think of his forecast? Do you believe the AI market is overvalued? Share your thoughts in the comments! 👇
