6–9 Months to the Next Stage? Burry’s New Warning Rocks the Market
AT A GLANCE
- Burry says stocks are in the first stage of a crash, the “denial” phase
- He says that stage lasted 6-9 months in both 2000 and 2008
- The S&P 500 hit a record 7,830 on Oct. 6
- He swapped stock shorts for puts on Nvidia, Palantir and Micron
- Steve Eisman disagrees with his AI argument
If Burry is right, trouble could hit markets in the first or second quarter of 2027.
The investor from “The Big Short” is sticking to his bearish call. Burry wrote on X that the market is “quite obviously” in its first stage of grief, denial.
KEY DETAILS
Burry says the denial stage ran 6-9 months in both 2000 and 2008. That points to turmoil in early 2027.
He says he’s moving his timelines up and wants more leverage in his shorts. To get it, he replaced stock shorts with puts on Nvidia, Palantir and Micron, expiring at various points next year.
His AI worry is about timing. Chips are upgraded quickly, while data centers last far longer, which could leave hyperscalers facing costly overhauls. He also says they carry $3 trillion in commitments that aren’t on their balance sheets yet.
Eisman disagrees. If OpenAI and Anthropic keep growing fast, he says, changes to depreciation schedules won’t matter.
MARKET REACTION
The S&P 500 closed at a record 7,830 on Oct. 6, up 0.7% on the day. It has set 28 records this year, most recently on Aug. 13. Wall Street has shrugged off inflation worries and bond-market turmoil.
WHY IT MATTERS
Burry is putting real money behind his view, and AI stocks are carrying this rally. Traders should also watch whether the Fed raises rates for a second time this year, which would push up borrowing costs.
Watch the Fed’s decision later this month, and keep an eye on Nvidia, Palantir and Micron.
Stay ahead of every market-moving headline with QuoMarkets.
Source: Yahoo Finance
