Michael Burry, the investor who famously predicted the 2007 subprime mortgage crisis, issued a cryptic warning about market bubbles on Friday, advising that "the only winning move is not to play."
Burry Sens A Cryptic Message On Bubbles
In an X post on Oct. 31, Burry posted a still of Christian Bale—the actor who portrayed him in the film The Big Short—with a short, three-line message.
"Sometimes, we see bubbles," he wrote. "Sometimes, there is something to do about it. Sometimes, the only winning move is not to play."
The post, which quickly amassed over a million views, suggests that unlike his famous 2007 bet against the housing market, the current environment may be one for investors to avoid entirely.
Burry's warning lands in the middle of a fierce debate over whether the massive, AI-driven rally in technology stocks is a sustainable revolution or a dangerous speculative bubble.
Bears Warn Against An AI Bubble
Bearish voices have grown increasingly loud. Investment firm GQG Partners recently labeled the market “Dotcom on steroids,” arguing fundamentals are deteriorating even as valuations soar.
This sentiment was echoed by Crescat Capital, which noted that top tech stocks are now valued 270% higher as a percentage of GDP than at the dot-com peak.
The Bank of England has also officially warned that the bursting of an “AI valuation bubble” is a key risk to global markets.
Bull Thesis Remains Intact Amid Skepticism
However, other financial heavyweights argue this time is different. Goldman Sachs recently stated that while valuations are high, they are not at “bubble-level” and are supported by strong fundamentals and massive cash flows, unlike in 2000.
JPMorgan Chase CEO Jamie Dimon has been similarly dismissive, stating, “You can’t look at AI as a bubble,” and comparing it to the dawn of the internet.
S&P 500 Scales New High Despite Bubble Fears
The S&P 500 scaled its latest 52-week high this week, which stood at 6,920.34 points. It has rallied 16.25% in 2025.
Meanwhile, on Thursday, the S&P 500 index slipped 0.99% to 6,822.34, whereas the Nasdaq 100 index fell 1.47% to 25,734.81. On the other hand, Dow Jones declined 0.23% to end at 47,522.12.
On Friday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were higher.
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