Markets· August 16, 2026 at 12:47 p.m.
Michael Burry Warns of Market Bubble as CAPE Ratio Nears Record High
Key takeaways
- Michael Burry warns of similarities between today's AI boom and the dot-com bubble
- CAPE ratio is near its all-time high from December 1999
- S&P 500 companies have exceeded earnings estimates by 29.2% in H1 2026
Burry's warnings and the approaching CAPE record highlight potential risks for investors. The combination deserves attention, as the market may need to stop producing extraordinary returns to justify current valuations.
