The fact that he was even able to make that bet is incredible. How deluded do you have to be to think the AI bubble won’t burst?
Nobody believes the AI investment/growth trajectory we have right now will continue for infinity. What nobody knows is: when the correction will occur.
Do you pull your investments out now and sit on the sidelines waiting for the fallout while your principal loses value daily from inflation?
What does the correction look like when it happens? Does all the value evaporate on day 1, the first week, a month? This is important to figure out for this strategy to know when to go back in.
This is the info/decisions you’d need as an average investor. What Burry is doing is the riskiest type of investments with shorting the market. If growth continue to occur he and his fund will have to pay for the growth to those whose shares he borrowed to short.
In summary, its not enough to know that a bubble exists, but to profit from it you have to figure out when it will burst and when the full burst is done.
Nobody believes the AI investment/growth trajectory we have right now will continue for infinity. What nobody knows is: when the correction will occur.
This is the info/decisions you’d need as an average investor. What Burry is doing is the riskiest type of investments with shorting the market. If growth continue to occur he and his fund will have to pay for the growth to those whose shares he borrowed to short.
In summary, its not enough to know that a bubble exists, but to profit from it you have to figure out when it will burst and when the full burst is done.