Burry warns U.S. households now hold more wealth in stocks than homes, a rare signal that last preceded multi-year bear markets in the late 1960s and 1990s.
- Wells Fargo–Bloomberg data show household stock wealth now exceeds real estate, a pattern last seen before long bear markets in the late 60s and 90s.
- Burry blames zero rates, stimulus, inflation, AI speculation and gamified trading for pushing stocks far ahead of fundamentals.
- He says passive money now dominates markets, warning it could turn a future selloff into a deep, years-long U.S. equity downturn.
Michael Burry, the investor known for predicting the 2008 financial crisis through short positions on mortgage-backed securities, has issued a warning about the U.S. economy based on historical wealth allocation patterns.
The former Scion Asset Management head shared data from Wells Fargo and Bloomberg showing the percentage of average U.S. household net worth allocated to real estate versus stocks. According to the data, American households currently hold more of their net worth in stocks than in real estate, a situation that has historically preceded extended bear markets.
Michael Burry warns of household debt
“This is a very interesting chart, as household stock wealth being higher than real estate wealth has only happened in the late 60s and late 90s, the last two times the ensuing bear market lasted years,” Burry stated in a social media post.
