Michael Burry Warns of 1987-Type Crash as S&P 500 Hits Record High
Michael Burry warned that US stocks may be near a major top and could suffer a 1987-type crash, even as the S&P 500 posted its first record close since June on Tuesday.
The investor, known for predicting the 2008 housing collapse, made the call in a Tuesday Substack post titled "Trading Post August 4, 2026 My Options." He confirmed he still holds short positions against Nvidia, Tesla, Palantir, and other AI-linked names.
'Big Short' Investor Michael Burry Warns of 1987-Type Crash
The S&P 500 gained 1.79% to close at 7,736.52 on Tuesday, while the Nasdaq Composite climbed 2.59% to a record high of 26,584.99. Equities advanced as upbeat corporate earnings and lower oil prices lifted sentiment, with crude retreating on expectations that the Strait of Hormuz could reopen.
Nonetheless, Burry believes demand for AI infrastructure depends on financing that may prove unsustainable. This latest forecast comes days after his June 30 bubble warning.
He also added that fresh highs tend to pull new money into stocks while falling volatility forces systematic funds to add leverage.
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