Michael Burry Warns of Market Imbalances and Easy Short Opportunities in Palantir and AI Stocks

Michael Burry, a hedge fund manager from The Big Short, warns that stocks now represent a larger share of household wealth than home equity for the third time in history, preceding prolonged recessions in the late 1960s and late 1990s. He identifies Palantir as an easy short opportunity due to what he views as an AI bubble. The concentration of wealth among households is a key warning sign, with stocks making up a large percentage of household wealth than housing only two times in history, once in the late-1960s and then again in the late-1990s, long duration recessions took place.