Michael Burry, famed for shorting the 2008 housing market, is issuing a new warning. He's advising investors to reduce exposure to parabolic tech stocks and raise cash.
Scion Asset Management's Q1 2026 13F filing reveals roughly $60 million in cash and $85 million in put options. The put options are aimed directly at two of the market's biggest darlings: NVIDIA and Tesla.
NVIDIA has surged 150% year-to-date. Tesla is up 45% over the same period. Burry also liquidated all of his Chinese tech holdings during Q1 2026.
Burry has drawn explicit parallels between today's Nasdaq 100 trajectory and the peak of the dot-com bubble in 2000. The current Nasdaq P/E ratio sits at 35x forward earnings, according to Goldman Sachs - the highest level since 2000.
Bitcoin and crypto have shown increasing correlation with tech stocks during periods of market stress, such as the 2022 drawdown when both fell in tandem.
Burry's track record deserves context. He was famously early on the housing short, enduring years of losses before the trade paid off spectacularly. He warned about a market crash in 2019 that didn't materialize as expected. He bet against Tesla multiple times before, and Tesla kept climbing.
A 28% YTD gain on the Nasdaq means many investors are sitting on unrealized profits. Burry's advice is essentially: take some gains before the market takes them for you.