'Big Short' investor Michael Burry says the market has 'jumped the shark' — what he says investors are getting wrong

Michael Burry warned in a May 11, 2026 Substack-posted commentary that the U.S. stock market rally may be peaking and a significant decline could be coming. He said the market has “jumped the shark,” comparing current sentiment—driven narrowly by enthusiasm for AI—to the late stages of the 1999–2000 dot‑com bubble, and cited a recent NASDAQ 100 reversal as evidence. Burry acknowledged past false alarms but noted earlier correct calls (2000, 2007, 2019) and the meme‑stock and bank‑run episodes. Other market veterans, including Paul Tudor Jones, have voiced similar valuation concerns. The piece is market commentary signaling heightened downside risk for major U.S. equities as valuation complacency and narrow thematic drives (AI) may leave markets vulnerable to a sharp correction.