Michael Burry Warns of a Stock Market ‘Supervolcano’
Michael Burry warned that the stock market resembles a “supervolcano,” citing shrinking market breadth, speculation, stretched valuations and returning inflation. In his latest Substack post, Burry called the S&P 500’s October 6 record high unremarkable, according to BeInCrypto, and argued that history points to prolonged weak returns: inflation-adjusted stocks fell about 53% from 1966 to 1982 and roughly 40% from 2000 to 2011. He said investors should know if 15 to 20 years of weak real returns lie ahead, with the central risk being time rather than a sudden wipeout. Crypto holders are watching whether digital assets would decouple; Bitwise CIO Matt Hougan has argued Bitcoin can thrive across economic scenarios.