If there is one investor who knows how to make a contrarian bet, it is Michael Burry. The investor made his name by spotting the cracks in the U.S. housing market before the 2008 financial crisis — a call immortalized in ‘The Big Short’. His bets have never been about following the crowd. It is about questioning what everyone else takes for granted, especially when valuations start looking disconnected from reality.
That mindset is especially interesting today, with artificial intelligence (AI) driving some of the market’s biggest rallies. Burry appears to be taking a skeptical look at that enthusiasm. In his latest update, he said he had “pulled in risk” across his portfolio, trimmed positions, and was holding more cash while waiting to see how markets develop this fall.
