Michael Burry Warns: Stock Market Vulnerable to Long Downturn Amid Wealth Shift

• "The Big Short" investor Michael Burry warns of a potential long and significant stock market downturn.
• His concern stems from a Wells Fargo chart showing US household net worth in equities now exceeds real estate, a rare occurrence.
• This condition previously occurred in the late 1960s and late 1990s, both followed by multi-year bear markets.
• Burry believes high equity holdings amplify losses during market sell-offs, calling himself "Beary Burry."
• Wells Fargo, however, argues policymakers will prevent a deep bear market due to economic and political costs, suggesting favorable near-term risk-reward.

Why It Matters: Michael Burry sees a historic wealth shift signaling a potential long bear market, but Wells Fargo is optimistic.