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Big Short Investor Sounds Alarm: Market Resembles Pre-Burst Internet Bubble

On May 9, the recent surge in AI-driven U.S. stocks has raised alarms among Wall Street professionals. Michael Burry, the investor who inspired the character in the film 'The Big Short' and accurately predicted the 2008 U.S. subprime mortgage crisis, has issued a new warning stating that the current stock market's fervent enthusiasm for artificial intelligence (AI) is beginning to resemble the final stages before the burst of the internet bubble in 2000. 'The discussions about AI are endless. Throughout the day, no one talks about anything else,' Burry expressed in a post on Substack on Friday. This sentiment came after he listened to financial news reports during a long drive. Burry noted that the stock market no longer responds logically to economic data such as employment reports or consumer confidence. On Friday, despite the consumer confidence index hitting a historic low, traders focused solely on the slightly better-than-expected April non-farm payroll report, pushing the S&P 500 index to a new high. 'Stock price movements are no longer related to employment or consumer confidence; they are rising simply because they are rising. Based on the two words (AI) that everyone thinks they understand... it feels like the last few months before the bubble burst in 1999-2000.'

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