Michael Burry is not a believer: ‘For any stocks going parabolic reduce positions almost entirely’. Shorting is not the answer.
u/WickedSensitiveCrew ·
Reddit — r/stocks
· May 11, 2026 at 16:32
· ⬆ 130 pts
· 💬 118 comments
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Summary
The post shares Michael Burry’s warning that surging tech stocks are in a dangerous bubble reminiscent of the dot‑com era, and advises investors to sharply reduce exposure to parabolic stocks rather than short them.
Burry himself holds a leveraged short position against “depressed and cheap” companies, but stresses that shorting is too risky for most retail investors.
The post is essentially a repost of a CNBC article; it contains no original analysis or specific ticker‑level data, making it noise rather than well‑researched DD.
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https://www.cnbc.com/2026/05/11/michael-burry-is-not-a-believer-for-any-stocks-going-parabolic-reduce-positions-almost-entirely.html
> Michael Burry urged investors to scale back exposure to surging technology stocks, saying the current market environment has reached historically dangerous extremes reminiscent of prior speculative bubbles. The famed investor, best known for predicting the 2008 housing collapse, said investors should “reject greed” as enthusiasm around artificial intelligence and momentum-driven trades pushes valuations sharply higher.
> “An easier way for most is to simply reduce exposure to stocks, to tech stocks in particular. For any stocks going parabolic reduce positions almost entirely,” Burry wrote in a Sunday Substack post. Burry has been warning for months that the stock market’s AI fixation increasingly resembles the final stages of the dot-com bubble. Last week, he compared the recent trajectory of the Philadelphia Semiconductor Index (SOX) to the run-up that preceded the collapse of technology stocks in March 2000, saying the current environment feels like “the last months of the 1999-2000 bubble.” Burry said he is maintaining “a significant leveraged short position” against a portfolio of companies he views as depressed and cheap, a similar strategy he employed in 2000.
> However, Burry warned that directly betting against the rally through short selling is risky and impractical for most investors, particularly as bearish trades have become increasingly expensive. “Shorting is not the answer. It is not something most people should ever do,” he said. “Right now it is expensive, in general, to buy put options and directly shorting stocks can still cause significant pain.”