**Michael Burry Issues First Market Warning Since April 2023, Cautions of Possible Bubble but Stays on Sidelines**
Michael Burry, the investor renowned for predicting the 2008 housing crisis, has made his first public statement since April 2023. On October 31, 2025, Burry posted a cryptic warning on X about a potential market “bubble,” while indicating he sees no clear way to profit from it.
His post read:
“Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
This quote references the 1983 movie *Wargames*, suggesting Burry recognizes risky speculation in the market but is choosing not to bet against it.
### “Cassandra Unchained” – A New Moniker with a Message
Burry also changed his X profile name to **“Cassandra Unchained.”** This nods to the Greek mythological figure Cassandra, who was cursed to make accurate predictions that nobody believed. The choice reflects Burry’s reputation for making accurate yet initially dismissed warnings.
### The Legacy of Michael Burry
Burry gained fame by predicting the collapse of the U.S. housing market before the 2008 financial crisis. He thoroughly analyzed subprime mortgages and used credit default swaps to short the housing sector. His foresight earned billions for his investors and was immortalized in the book and film *The Big Short*.
### What Bubble is Burry Warning About?
Unlike his previous clear identification of the housing bubble, Burry has not specified which market sector he is concerned about this time. Market observers speculate he may be referring to the technology sector, particularly the rapid rise of artificial intelligence (AI) investments.
Companies have invested hundreds of billions of dollars into AI infrastructure and data centers. For example, Nvidia’s market capitalization surpassed an astonishing $5 trillion as of October 29, 2025—exceeding the GDP of major economies like India, Japan, and Germany. This surge is largely driven by soaring demand for AI chips.
### Burry’s Current Market Position: Staying on the Sidelines
Unlike his famous housing market short, Burry is not betting against the market now. Instead, he appears to be taking a defensive, “wait and see” approach.
Throughout 2025, Burry’s Scion Asset Management has shown a shifting strategy:
– In Q1 2025, the firm liquidated nearly all its holdings, ending March with just seven positions. These included bets against Alibaba, JD.com, and Nvidia, plus shares in Estée Lauder.
– By the end of June, the portfolio expanded to 15 positions with call options on companies like Alibaba, Meta, ASML, UnitedHealth, Regeneron Pharmaceuticals, and Lululemon. Estée Lauder remained the only consistent holding throughout the year.
Burry’s upcoming 13-F filing, due in about two weeks, will reveal his holdings through the end of September 2025. His recent message suggests he may continue to adopt a cautious stance moving forward.
### Market Performance and AI Concerns
U.S. stock markets have performed strongly in 2025:
– The S&P 500 gained nearly 16% year-to-date.
– The Dow Jones Industrial Average rose 11.7%.
– The Nasdaq 100 surged 24.3%.
Tech companies have seen varied third-quarter earnings reactions. Meta and Microsoft stocks retreated following disappointing reports, while Amazon and Apple bounced back with strong earnings, lifting the indexes again.
Amid this, some investors worry about how AI expansion is being funded. Meta recently announced a $30 billion financing package for its Hyperion data center in Louisiana, utilizing a special purpose vehicle to keep debt off its balance sheet. The company is also reportedly considering an additional $25 billion bond sale, with a prospectus filed with the SEC.
### Final Thoughts
Michael Burry’s warning emerges amid growing debate over whether the AI-driven tech stock surge reflects genuine progress or inflated valuations. His decision to hold a defensive position — effectively sitting on the sidelines — suggests he sees significant risk but no clear opportunity to capitalize on right now.
Investors will be closely watching Burry’s next 13-F filing for clues on whether he maintained this cautious posture through the third quarter of 2025.
https://coincentral.com/big-short-investor-michael-burry-breaks-silence-to-warn-of-market-bubble/
Be First to Comment