Michael Burry bets against rally: 'We are near a major top, and possible a 1987-type fall'
"I continue to believe it is possible we are near a major top, and possible a 1987-type fall," Burry said in a Tuesday Substack post.
Michael Burry, the infamous Wall Street investor known for his investments in the 2008 financial crisis portrayed in the film "The Big Short," remains skeptical of the current stock market rally. In a recent Substack post, Burry warned that the market may be nearing a major top and could potentially experience a sharp decline similar to the 1987 stock market crash.
Despite the S&P 500 reaching a record high, Burry remains convinced that new money could still enter the market, driven by the rally. However, he cautioned that the rally is fueled by declining volatility, which could encourage systematic investors to increase their exposure through leveraged funds and momentum strategies. Burry continues to hold short positions in various tech stocks, including Nvidia, Micron, and Caterpillar, maintaining his confidence in these positions despite the market's upward trend.
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