The Big Short’s Michael Burry Predicts a Possible 1987-Style Drop and is Betting Against AI Giants Nvidia and Palantir. Should You Follow?
Burry gained fame after predicting the subprime market crash.
Overview
Investors have closely watched hedge fund manager Michael Burry's moves in recent years. That's after this top investor identified weakness in the U.S. housing market in the early 2000s, prior to the subprime crash -- and placed bets that would bring in $700 million for his clients. In fact, Burry's story later made it to the silver screen in the movie The Big Short.
Burry, as was clear in his bet against the U.S. housing market back then, is known for looking closely at current market trends -- and he doesn't mind going against the crowd when he sees fit. This brings me to Burry's latest move. Over the past year, he's placed a significant bet against artificial intelligence (AI) stocks, players that have driven the S&P 500 higher in recent years. In fact, in an August post on Substack, he reiterated his short positions in Nvidia, Palantir, and other AI-related stocks and even predicted a possible 1987-style market decline.
Details
Is it time to follow this investing giant and turn away from AI stocks? Let's find out.
Source
Originally published at www.fool.com.