Michael Burry’s 2025 S&P 500 Smackdown – Here’s How to Play It
Wall Street’s favorite contrarian is at it again—Burry just flagged the S&P 500 as the next big short. While suits chase index funds like lemmings, his playbook reveals a brutal truth: passive investing eats dust in volatile markets.
The Burry Blueprint
Forget dollar-cost averaging into oblivion. His move? Heavy puts on overvalued megacaps, paired with asymmetric bets on commodities and—surprise—select crypto hedges. Because nothing terrifies the establishment like decentralized assets mooning during their meltdown.
Why This Hurts
The S&P’s ’diversification’ myth gets exposed when correlation spikes. Burry’s strategy exploits Wall Street’s dirty secret: their ’safe’ ETFs are just weighted coffins during real crashes. Bonus cynicism: Goldman will still charge 2% fees to lose your money ’professionally.’
Game on.
Outperforming The S&P 500: Michael Burry’s 2025 Playbook
Burry’s Chinese Tech Focus
The Michael Burry strategy in 2025 currently centers on Chinese technology companies, with a massive 43% of his portfolio allocated to just three firms. While the S&P 500 has fallen about 5.45% to 5,560.83 points and the Dow Jones dropped approximately 4.74% to 40,527.62 since January, Burry’s big short investor instincts led him to look elsewhere for better returns.
Impressive Returns Beat Market
As of now, Burry’s stock market forecast for 2025 appears to be validated by some truly tremendous results. His Alibaba position (around 150,000 shares) has surged an impressive 40.21% to $118.88, effectively turning $12.7 million into about $17.8 million. Additionally, his JD.com stake (roughly 300,000 shares) gained nearly 29.12%, while Baidu shares also ROSE by approximately 16.37% year-to-date.
The Cost of Ignoring Burry
The Michael Burry strategy of focusing on undervalued Chinese tech has delivered some rather remarkable outperformance against the S&P 500 at this point in time. His initial $33.6 million investment grew to roughly $41.9 million, while an equivalent S&P 500 investment would have actually shrunk to approximately $31.8 million. Even popular U.S. stocks like Tesla and Nvidia would have resulted in significant underperformance compared to Burry’s recession-proof investments approach in the current market conditions.
The Big Short Investor’s Edge
The stock market forecast of this big short investor continues to defy conventional wisdom in many ways. Burry’s willingness to make concentrated bets in somewhat overlooked markets demonstrates why his strategy consistently outperforms the S&P 500 during challenging economic conditions like we’re seeing right now. As 2025 progresses, many investors are carefully watching to see if the Michael Burry strategy continues delivering such outsized returns in the coming months.
