「The Big Short」 Michael Burry: Market May Be in a Bubble, Sitting Out Is the Winning Move

On October 31st, Michael Burry, who served as the real-life prototype for the protagonist in the movie "The Big Short", appeared to issue a rather ambiguous warning to retail investors regarding market exuberance. He made a post on social media stating, "There will be times when we encounter a bubble. There will be times when we can 'ride the wave'. And there will be times when going against the mainstream is the only path to victory." At the time of his posting, an increasing number of people were beginning to question the financial stability of the AI frenzy. For instance, this week, NVIDIA became the first company to exceed a market value of $5 trillion. Its market capitalization currently accounts for nearly one-tenth of the total market capitalization of the S&P 500, surpassing the GDP of India, Japan, and Germany. Michael Burry is renowned for his cautionary remarks about the market and the economy. However, this time, his post did not specifically point to any particular bubble.