'The Big Short' investor Michael Burry warns speculation has reached a century high - and points to Rivian's $100 billion IPO as a prime example

Michael Burry. Jim Spellman/Getty Images
Michael Burry said that speculation has reached a new high and that valuations have exceeded those of dot-com.

Rivian was the startup that "The Big Short" investors pointed out, which is worth more than $100 billion.

Burry pointed out that real wages in the US have fallen this year and that inflation is a major problem for the poor.

In a tweet, Michael Burry said that market speculation has reached its peak in a century and that asset valuations are higher today than they were during the dotcom bubble.

He said that there was more speculation in the 1920s than in the 1990s, referring to the years preceding the Great Crash of 1929. "More overvaluation that the 1990s."

The Wall Street Journal article about Rivian, an electric vehicle startup that only produced 156 vehicles and generates almost no revenue, was highlighted by the investor behind "The Big Short." Its market capitalization is now at over $100 billion, despite the fact that it went public this week.

Burry also tweeted on Thursday that US wage growth had lagged inflation, and that price rises disproportionately affect the poor.

He stated that American real wages, adjusted for inflation, have fallen 2.2% since January 1. This seems to be the only meaningful thing that has fallen in this mad, crazy year. Inflation is a very regressive tax. Never forget it."

Scion Asset Management boss Elon Musk has his sights set on electric-vehicle businesses and inflation this week. He suggested that Tesla CEO Elon Musk may be selling stock to pay his personal debts and hinted at the possibility of the stock plummeting 90%.

He also noted that October's month-on-month inflation reached a 13 year high primarily due to rising energy prices and other factors unrelated the US economy's reopening following the pandemic.

Burry is most well-known for calling the mid 2000s housing bubble, and then betting on its demise to make a fortune. For months, he has been warning casual investors to avoid gambling on meme stocks, cryptocurrency, and other risky assets.

He tweeted that "all hype/speculation does is draw in retail before the Mother of all crashes." "When crypto drops from trillions or meme stocks from tens to billions, #MainStreet loss will be comparable to the size of countries."

Continue reading: A Michael Burry subreddit founder explains why 'The Big Short Investor' is so appealing - and shares the stocks he tweets about.