🦢 Michael Burry expects a major crash in the US stock market...

The legendary investor who predicted the 2008 crisis is sounding the alarm again. The US stock market could collapse more dramatically than during the dot-com crash of 2000.

Reasons:

➠ Shares of tech giants and AI startups are unreasonably overpriced – valuations don't reflect actual profits.

➠ More than half of all US stocks are now in passive funds (ETFs and indices). This means there are fewer active investors in the market who analyze companies and can curb panic.

➠ Nvidia, Palantir, and other "AI stars" have soared not because of actual results, but because of hype. When the hype subsides, it will hurt (AI bubble).

➠ Some companies manipulate their financial statements to hide real problems.

➠ Michael Burry sees parallels with past bubbles: the market is once again believing that the old rules of economics no longer apply.

➠ If a market crash begins, we won't see a short correction, but a protracted decline that could last for years.

As a reminder, the film "The Big Short" was made based on Michael Burry's success story.