Burry Warns US Stocks Near Top, Citing 1987-Style Crash Risk Amid AI Skepticism

Michael Burry flags potential S&P 500 peak and 1987-style crash risk. He maintains short positions in Nvidia, Tesla, and others, citing unsustainable AI financing models despite recent market highs.

Woofun AI reports that Michael Burry issued a bearish outlook on the US equity market, suggesting the S&P 500 may be nearing a significant top with the possibility of a crash resembling the 1987 event. He argued that declining volatility could trigger a self-reinforcing cycle where volatility target funds increase leverage and momentum strategies expand risk exposure.

Burry expressed skepticism toward the AI investment boom, noting that current infrastructure spending relies on unsustainable financing models. He continues to hold short positions in semiconductor ETFs, Nvidia, Micron, Tesla, Caterpillar, Palantir, and Applied Materials, stating that all but the Nvidia position are currently profitable. He warned that shorting is unsuitable for most investors and indicated he would exit positions via stop-loss if market trends remain unfavorable.