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Michael Burry Warns of Rare Wealth Signal as Household Stock Holdings Top Real Estate

He warns passive-fund dominance could magnify any selloff.

Overview

  • New Wells FargoBloomberg figures show U.S. households now hold a larger share of net worth in equities than in homes.
  • Burry points to the late 1960s and late 1990s as the only prior periods with this pattern, both followed by multi-year equity downturns.
  • He attributes the shift to years of near-zero rates, pandemic stimulus, elevated inflation and higher Treasury yields, alongside gamified trading and AI-fueled speculation.
  • In an interview with Michael Lewis, he said passive money now exceeds 50% and argued it would be difficult to remain long U.S. stocks if a downturn begins.
  • He shared the chart on X and noted stocks have outpaced even roughly 50% gains in home prices.