When markets grind higher and volatility collapses, most investors start to believe risk has gone away. They measure portfolios by how much short-term pain they have avoided, not by how well they will compound over the next decade. That is exactly the moment when serious risk accumulates quietly and pain shows up later. I’ve heard the phrase ‘buy the dip’ way too often recently.
That is where Michael Burry’s commentary fits in this environment. People fixate on his timing, as if predicting when prices will go down is the main skill. It is not. Timing is almost always unknowable. Markets stay irrational longer than anyone expects. Liquidity can overwhelm logic for years. But the setup he is talking about has merit because it is structural, not emotional.
