Michael Burry Warns AI Rally Mirrors Dot-Com Bubble as Oil Nears $100
TLDR
- Burry says today’s market feels like the final months of the 1999-2000 dot-com bubble
- He warns investors are ignoring all data to focus solely on AI stocks
- Rising oil near $100, long-term Treasury yields above 5%, and AI debt spending are creating multiple pressure points
- Private equity and private credit markets could be vulnerable if borrowing costs keep rising
- Burry admits past failed crash calls but points to correct calls in 2000, 2007, and 2021
Michael Burry, the investor who predicted the 2008 housing crash, says the stock market is behaving just like it did in the final months of the dot-com bubble.
In posts on Substack and X, Burry said investors have stopped paying attention to jobs data, consumer sentiment, or global events. Instead, they are focused on one thing: artificial intelligence.
“Absolutely non-stop AI. Nobody is talking about anything else all day,” he wrote after listening to financial radio on a long drive.
He said stocks are rising not because of fundamentals, but because they have been rising. He called it a “two letter thesis that everyone thinks they understand.”
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