Michael Burry warns of market risks during Nvidia's surge

Michael Barry, the model for the movie “The Big Short,” is showing a cautious stance regarding the current market environment. Having accurately predicted the 2008 subprime crisis, he made a comment stating, “Sometimes you can see the bubble. The only way to win in it is not to play.”

Barry’s changing market positions tell a story about the specificity of his warnings. In the most recent quarter, he liquidated nearly all of his US stock holdings and only retains Estée Lauder shares. Furthermore, notably, he has been actively purchasing Nvidia put options. This move has attracted significant attention in the market and is being closely watched by both institutional and individual investors.

Nvidia’s position in the market has made Barry’s warnings even more weighty. The company’s market capitalization has already exceeded $5 trillion, accounting for about 10% of the entire S&P 500 index. It has become a symbol of the rapid rise in the technology and AI sectors, while also amplifying concerns about bubble risks.

Among market participants, discussions about short-term correction risks are intensifying. In a highly volatile environment, there is a growing view that maintaining a long-term investment strategy is more important than being swayed by daily highs and lows. Barry’s moves and statements suggest that an excessive concentration in technology-related assets could have significant impacts during future market correction phases.