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Michael Burry isn’t afraid to go against the herd.
The hedge fund manager famously bet against the U.S. housing market ahead of the 2008 crash — earning $100 million for himself and $725 million for his investors — a move later profiled in the hit movie “The Big Short” (1).
Now, he’s raising alarms again.
“Sometimes, we see bubbles,” Burry wrote recently on X. “Sometimes, there is something to do about it. Sometimes, the only winning move is not to play” (2).
Yet this time, he is playing.
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In a new 13F filing on Monday, Burry’s firm, Scion Asset Management, revealed bearish positions against two of the market’s hottest names (3).
Scion disclosed put options on 1,0000,000 shares of Nvidia (NVDA) and 5,000,000 shares of Palantir (PLTR) as of Sept. 30.
A put option gives the holder the right — but not the obligation — to sell a stock at a set strike price before expiration, a strategy typically used when an investor expects the stock’s price to decline.
Nvidia has become the chipmaker of choice in the AI race — and a Wall Street idol. Its shares have surged 41% year-to-date and an eye-popping 1,240% over the past five years, helping it briefly reach a $5-trillion valuation recently.
Palantir — a fast-rising data and software powerhouse — is another darling of the AI boom. Despite a recent post-earnings pullback, shares are still up 260% over the past 12 months.
While Scion’s filing doesn’t include the strike prices, expiration dates or premiums paid for those options contracts, the underlying shares tied to these put positions carried a combined notional value of nearly $1.1 billion.
Burry himself even leaned into the drama — pairing his “bubble” comments with a photo of Christian Bale portraying him in “The Big Short.”
Not everyone is impressed. Palantir CEO Alex Karp fired back on CNBC.
“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp said (4). “The idea that chips and ontology is what you want to short is bats— crazy.”
Still, concerns about speculation in the AI trade are bubbling up elsewhere. Goldman Sachs CEO David Solomon recently warned that “a bunch of the capital that’s being deployed [in AI] will actually not produce any returns” (5).
In fact, both Goldman Sachs and Morgan Stanley have recently warned of a potential market correction, with Goldman forecasting a possible 10%–20% drawdown in stocks sometime in the next 12 to 24 months (6).
If you share those concerns, it may be time to consider how to protect your portfolio.
A safe haven shines again
When storm clouds gather over the markets, gold often steps back into the spotlight.
Long seen as the ultimate safe haven, gold isn’t tied to any single country, currency or economy. It can’t be created at will by central banks like fiat money and in times of economic turmoil, market turbulence or geopolitical uncertainty, investors tend to pile in — driving up its value.
Over the past 12 months, gold prices have surged by more than 45%.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly emphasized gold’s importance in a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” he told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
A time-tested income play
Like stocks, real estate has its cycles, but it doesn’t rely on a booming market to generate returns.
Even during a downturn, high quality, essential real estate can continue to produce passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.
In fact, investing legend Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check” (7).
Why? Because no matter what’s happening in the economy, people still need a place to live and apartments can consistently produce rent money.
Of course, you don’t need billions — or even to buy an entire property outright — to benefit from real estate investing.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Getting a piece of the action
Whether Burry’s move resonates with you or you have your own market convictions, you no longer need a hedge fund to put your views into action. Today’s trading platforms give everyday investors access to tools that were once reserved for Wall Street desks, letting you buy stocks, explore options strategies and build positions based on your outlook.
Robinhood is one example. With the popular brokerage app, you can buy and sell stocks, ETFs and their options commission-free, track your portfolio in real time and get 24/7 access to customer service.
For those starting small, the app also lets you buy fractional shares for as little as $1, making it easy to build a diversified portfolio without breaking the bank.
Of course, making trades is only part of the equation. Keeping an eye on the bigger picture can help you stay diversified and grounded when markets get choppy. That’s where Range comes in.
Built with high-earning households in mind, Range gives you a comprehensive view of your finances — from net worth and portfolio allocation to risk metrics and advanced financial-planning tools — helping ensure your investments stay aligned with your long-term goals, even when market headlines get loud.
Whether you’re cautiously positioning for volatility, looking to take advantage of dislocation, or simply building your strategy one step at a time, platforms like Range can help you stay informed, stay balanced and stay ready — whether the next move in markets is a rally, a reset, or something in-between.
You can book a free demo to see if Range can meet your comprehensive financial needs.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Vanity Fair (1); @michaeljburry (2); The Securities and Exchange Commission (3); CNBC (4; 6; 7); @TheEconomicClub (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.