I just came across a post by Michael Burry, and it’s just a wild moment. The guy who predicted the 2008 mortgage crisis stayed silent for years, and now suddenly he released one message — literally four lines. And the whole market is starting to get nervous.

His words are simple: sometimes you see bubbles, sometimes you need to do something about it, and sometimes you just don’t play. It sounds banal, but when Burry says it — it’s a whole different story.

In the context of what’s happening with the AI sector and Nvidia, which is skyrocketing in market capitalization, his hint at a new bubble sounds pretty ominous. His fund has already sold almost the entire portfolio and opened short positions. This is not a joke, it’s a serious signal.

I hear the word bubble more and more often in the context of technology. But I remember Keynes — the market can be irrational much longer than you can stay solvent. That’s the thing.

History shows that bubbles always burst, but it usually happens after everyone is already convinced that this time will be different. Michael Burry clearly thinks we’re already close to that moment. It’ll be interesting to see how right he is this time.