Noted investor Michael Burry, known for predicting the 2008 housing market collapse, suggests a potential market downturn based on a historical pattern. His chart shows that stock market peaks often occur in the middle of investment booms, with spending continuing for a year or two before a collapse. Burry points to past market highs, like the Nasdaq before the dot-com bust and the S&P five hundred before the housing crisis, as examples of this pattern. Currently, the Nasdaq one hundred has reached a record high, which could be the markets peak in the current investment cycle. This comes as major AI companies plan to invest trillions in microchips and data centers, fueling a new tech boom. If Burrys historical pattern holds true, these AI companies might continue their massive spending for up to two more years before the investment surge crumbles, potentially leading to a stock market crash and economic recession. Burry, who is deeply involved in AI research, is set to appear on a podcast with The Big Short author Michael Lewis to discuss the book and movies anniversaries.

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