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Michael Burry isn\u2019t afraid to go against the herd.<\/p>\n
The hedge fund manager famously bet against the U.S. housing market ahead of the 2008 crash \u2014 earning $100 million for himself and $725 million for his investors \u2014 a move later profiled in the hit movie The Big Short (1).<\/p>\n
Top Picks <\/p>\n
Now, he\u2019s raising alarms again.<\/p>\n
In April, Burry doubled down on his prediction that the AI bubble is set to pop. CNBC reported that he had initiated a new position in Microsoft and increased holdings in MSCI, PayPal and Adobe (2).<\/p>\n
\u201cSoftware stocks sold off hard today on some earnings news from IBM and ServiceNow that investors took as indicative of an AI threat,\u201d Burry said in a Substack post (3). \u201cI did not sell any software stocks.\u201d<\/p>\n
Burry first put his followers on alert in 2025.<\/p>\n
\u201cSometimes, we see bubbles,\u201d Burry wrote on X in late 2025. \u201cSometimes, there is something to do about it. Sometimes, the only winning move is not to play (4)\u201d.<\/p>\n
In a 13F filing in early November 2025, Burry\u2019s firm, Scion Asset Management, revealed bearish positions against two of the market\u2019s hottest AI names (5). Scion disclosed put options on 1,0000,000 shares of Nvidia (NVDA) and 5,000,000 shares of Palantir (PLTR).<\/p>\n
A put option gives the holder the right \u2014 but not the obligation \u2014 to sell a stock at a set strike price before expiration, a strategy typically used when an investor expects the stock\u2019s price to decline.<\/p>\n
In other words, through Scion, Burry bet against Nvidia and Palantir.<\/p>\n
Why Burry is betting on a bubble burst <\/p>\n
By way of explaining his choice, Burry reposted an interview with Nvidia CEO Jensen Huang on X in mid-April 2026, where the head of the company was put in the hot seat by podcaster Dwarkesh Patel (6).<\/p>\n
\u201cDwarkesh nailed it,\u201d Burry wrote. \u201cJensen squirmed and obfuscated. This was shocking to me. Every $NVDA bull needs to watch this with an unbiased eye.\u201d<\/p>\n
Nvidia has become the chipmaker of choice in the AI race \u2014 and a Wall Street idol. Its shares hit a new peak price of $216.61 as of late April (7), and have risen by over 73% in the last year alone (8).<\/p>\n
While Scion\u2019s filing doesn\u2019t include the strike prices, expiration dates or premiums paid for those options contracts, the underlying shares tied to Scion\u2019s put positions carried a combined notional value of nearly $1.1 billion.<\/p>\n
Burry himself even leaned into the drama \u2014 pairing his \u201cbubble\u201d comments with a photo of Christian Bale portraying him in The Big Short.<\/p>\n
Is Burry wrong to bet against AI? <\/p>\n
Not everyone is impressed. Palantir CEO Alex Karp fired back on CNBC in November 2025.<\/p>\n
\u201cThe two companies he\u2019s shorting are the ones making all the money, which is super weird,\u201d Karp said (9). \u201cThe idea that chips and ontology is what you want to short is bats\u2014 crazy.\u201d<\/p>\n
Other reports suggest that the bubble fears are a thing of the past. Writing in The Atlantic, Rog\u00e9 Karma noted that while he previously believed a bubble was coming, bets on AI are starting to pay off, and AI companies are turning profitable (10).<\/p>\n
\u201cSoftware developers are adopting AI tools en masse and reporting astronomical productivity benefits.\u201d Karma wrote. \u201cThe worry that the country is building too many data centers now coexists with the fear that we won\u2019t have enough of them to satisfy the public\u2019s growing appetite for these products.\u201d<\/p>\n
AI darling Anthropic is also emerging as a runaway success, with Karma citing an Axios report that the company\u2019s revenue is increasing faster than Zoom\u2019s during the pandemic, and even Standard Oil\u2019s during the Gilded Age (11).<\/p>\n
\u201cIf the company\u2019s current growth rate were to continue, then by early next year it would be taking in more money than any other company in the world,\u201d he wrote.<\/p>\n
So is Burry \u201cbats\u2014 crazy\u201d, or once again poised to say \u201cI told you so\u201d? Here\u2019s how to protect your portfolio either way.<\/p>\n
Read More: Robert Kiyosaki warned of a ‘Greater Depression’ \u2014 with millions of Americans going poor. Was he right?<\/a><\/strong><\/p>\n A safe haven shines again<\/strong> <\/p>\n When storm clouds gather over the markets, gold often steps back into the spotlight.<\/p>\n Long seen as the ultimate safe haven, gold isn\u2019t tied to any single country, currency or economy. It can\u2019t be created at will by central banks like fiat money, and in times of economic turmoil, market turbulence or geopolitical uncertainty, investors tend to pile in \u2014 driving up its value.<\/p>\n In fact, gold\u2019s stellar performance in 2025 shows just how much investors rely on the metal as a safeguard when the markets are rocky.<\/p>\n Burry himself made a big bet on gold in 2024, purchasing 440,729 shares of Sprott Physical Gold Trust at the end of the first quarter. The shares, valued at $7.6 million, were at the time the fifth-largest position in his portfolio (12).<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold<\/a>, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver<\/a> on qualifying purchases.<\/p>\n A time-tested income play<\/strong> <\/p>\n Like stocks, real estate has its cycles, but it doesn\u2019t rely on a booming market to generate returns.<\/p>\n Even during a downturn, high-quality, essential real estate can continue to produce passive income through rent. In other words, you don\u2019t have to wait for prices to rise to see a payoff \u2014 the asset itself can work for you.<\/p>\n In fact, investing legend Warren Buffett has occasionally pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him \u201c1% of all the apartment houses in the country\u201d for $25 billion, he would \u201cwrite you a check (13).\u201d<\/p>\n Why? Because no matter what\u2019s happening in the economy, people still need a place to live and apartments can consistently produce rent money.<\/p>\n Of course, you don\u2019t need billions \u2014 or even to buy an entire property outright \u2014 to benefit from real estate investing.<\/p>\n You can tap into this market by investing in shares of vacation homes or rental properties through Arrived<\/a>.<\/p>\n Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties<\/a>, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.<\/p>\n To get started, simply browse through their selection of vetted properties<\/a>, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100<\/a>, potentially earning quarterly dividends.<\/p>\n Short-term rentals aren\u2019t the only way to tap into this market without a major property investment. You can also invest in the long-term rentals market, which can offer more stable returns.<\/p>\n Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT<\/a>, which gives accredited investors access to single-asset multifamily and industrial deals.<\/p>\n Lightstone DIRECT lets individual investors tap into the institutional approach of Lightstone, one of the largest privately held real estate investment firms in the U.S., with $12 billion in assets under management.<\/p>\n The platform eliminates middlemen and the extra layers of fees that can add up in traditional real estate investing, usually known as \u201cfee stacking.\u201d This streamlined approach provides more direct access to institutional-quality deals.<\/p>\n Over nearly four decades, Lightstone has delivered strong risk-adjusted performance \u2014 including a 27.6% historical net IRR and a 2.54x historical net equity multiple on realized investments since 2004.<\/p>\n Each opportunity requires a $100,000 minimum and undergoes a rigorous review by Lightstone\u2019s principals, including founder David Lichtenstein.<\/p>\n Lightstone also invests at least 20% of its own capital in every deal<\/a> \u2014 roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.<\/p>\n Getting a piece of the action<\/strong> <\/p>\n Whether Burry\u2019s move resonates with you or you have your own market convictions, getting the right investment advice is no longer a matter of simply relying on a single advisor at your bank. You can get the benefit of advice from a team of former hedge fund analysts with Moby<\/a>.<\/p>\n They offer expert research and recommendations to help you identify strong, long-term investments backed by In four years, and across almost 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.<\/p>\n Moby\u2019s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to you<\/a>. Their research keeps you up-to-the-minute on market shifts, and can help you reduce the guesswork behind choosing stocks and ETFs.<\/p>\n Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes<\/a>.<\/p>\n \u2014 With files from Jing Pan<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n Article sources<\/strong> <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Vanity Fair (1<\/a>); CNBC (2<\/a>), (9<\/a>), (13<\/a>); @michaeljburry (3<\/a>), (4<\/a>), (6<\/a>); SEC (5<\/a>); Nvidia Investor Relations (7<\/a>); Trading Economics (8<\/a>); The Atlantic (10<\/a>); Axios (11<\/a>); Investor Place (12<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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