Burry Warns of '1987-Type Fall' as Market Hits Record High

Closely followed investor Michael Burry is sounding the alarm on a potential stock market crash, likening it to the infamous 'Black Monday' in 1987. In his latest Substack post, Burry expresses concern that the market may be near a major top and warns of a possible '1987-type fall'. On October 19, 1987, the Dow Jones Industrial Average plummeted 22.6% in a single trading session, making it the largest one-day percentage drop in stock market history.

Burry's comments come as both the benchmark S&P 500 index and the blue-chip Dow Jones Industrial Average hit record highs following strong corporate earnings. However, he remains skeptical of the artificial intelligence (A.I.) boom, arguing that demand for A.I. infrastructure is being fueled by unsustainable financing arrangements.

Burry continues to short leading technology stocks tied to the A.I.-trade, including Nvidia (NVDA), Micron Technology (MU), and Palantir (PLTR). Despite his confidence in these short positions, he cautioned investors against shorting too many stocks aggressively, stating 'Shorting is not for everyone... I must short. Most should not.'