Michael Burry Is Betting Against Artificial Intelligence (AI). Here's the Case for and Against, and the One Stock I'd Still Own.
Burry has increased bearish bets in recent times.
Overview
Michael Burry first took center stage when he spoke out about the U.S. housing market in the early 2000s, predicting the subprime market crash. The hedge fund manager placed massive bets against the housing market and ended up making $700 million for his clients. Several years later, the movie The Big Short documented his story and the story of other financial professionals who made similar moves leading up to the crash.
Since that time, investors have taken Burry's predictions and investing moves very seriously. Burry closed his hedge fund, Scion Asset Management, last year, but he still invests and regularly shares his thoughts on the market in his newsletter. In recent weeks, he's deepened his bearish view and his bet against artificial intelligence (AI) stocks, saying a crash may happen sooner instead of later.
Details
Investors, including Burry, have expressed concern about the depth of spending by tech companies in the AI build-out. And at the same time, AI stocks have continued to march higher. Here's the case for and against AI stocks right now -- and here's the one stock I'd still own.
Source
Originally published at www.fool.com.
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