Michael Burry warned that investors are in “denial” similar to the periods preceding the market downturns of 2000 and 2008, hours after the Nasdaq closed at a record high on Monday.
“The stock market is quite obviously in its first stage of grief, denial. Per 2000 and 2008, this stage lasts 6-9 months,” Burry said on X.
His warning came after Wall Street’s major averages closed higher Monday, with the Nasdaq Composite reaching a fresh record and the S&P 500 ending just below its all-time high. The blue-chip Dow DJI closed +0.1%, the benchmark S&P 500 (SP500) added +0.6%, and the tech-focused Nasdaq Composite 
COMP ended +1% to hit a record high of 27,477.31.
Burry’s latest comments follows a September shift toward leveraged bearish bets. “Fundamentally, I am moving timelines up,” he said, replacing several stock short positions with put options, including bets tied to Nvidia, Palantir and Micron, while increasing his Nasdaq 100 put position.
Still, Burry’s bearish outlook does not rule out further market gains. He described the Nasdaq 100 
NDX as “historically overvalued, and historically top heavy,” while anticipating that the index could still reach another record, a call that was borne out by Monday’s close.
More recently, Burry repositioned several beaten-down holdings ahead of the tax-loss selling season. He swapped Lululemon for Deckers, shifted his Fannie Mae exposure into Freddie Mac and replaced positions in Sprouts Farmers Market and Zoetis with long-dated call options.
“I expect a 2000-2003 style value revival as the AI boom turns to bust,” he said. Burry has also increased his MetLife put position while adding JD.com calls and BYD shares, pairing bearish bets against the AI boom with selective investments outside the trade.
Meanwhile, billionaire investor Ray Dalio repeated his warning that the U.S. could face a debt crisis within three years. His comments come as a months-long selloff in government bonds has pushed borrowing costs higher, with the 10-year Treasury yield around 5.3%, near levels last seen in 2002.
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