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 hedge fund manager famous for his role in "The Big Short," remains bearish despite the S&P 500 achieving new record highs. In a recent Substack post, Burry warned that the current rally could lead to a sharp sell-off reminiscent of the 1987 market crash. He believes that the S&P 500 making new highs could attract more capital into the market, but it may also create a self-reinforcing cycle of declining volatility, encouraging systematic investors to increase leverage and momentum strategies to join in.
Burry continues to hold short positions in several stocks, including iShares Semiconductor ETF, Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials, despite all of these positions being profitable except for his bet against Nvidia.
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