Burry Warns of 1987-Style Crash as S&P 500 Hits New High

Michael Burry, known for his bearish wagers and predictions, is sticking to his guns even as the S&P 500 surges to a record high. In a recent Substack post, he warned that the rally could end in a sharp sell-off reminiscent of the 1987 stock-market crash.

The S&P 500 jumped 1.9% on Tuesday to its first record close since June, buoyed by stronger-than-expected corporate earnings and a drop in oil prices. However, Burry remains skeptical of the market's advance, arguing that it is creating a self-reinforcing cycle with declining volatility encouraging systematic investors to increase exposure.

Burry has been critical of the artificial intelligence boom, saying that demand for AI infrastructure is being fueled by financing arrangements that may prove unsustainable. He continues to hold short positions in several companies, including Micron and Nvidia, and believes his long-term outlook remains intact.