Michael Burry bets against rally: 'We are near a major top, and possible a 1987-type fall'

Skip NavigationMarketsPre-MarketsU.S. MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePolitics & PolicyWhite HousePolicyDefenseCongressExpanding OpportunityVideoLatest VideoFull EpisodesLivestreamLive AudioLive TV ScheduleCNBC PodcastsCEO InterviewsCNBC DocumentariesDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() MarketsMichael Burry bets against rally: 'We are near a major top, and possible a 1987-type fall'Published Tue, Aug 4 20264:39 PM EDTUpdated Tue, Aug 4 20265:39 PM EDTYun Li@YunLi626WATCH LIVEKey Points"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. The S&P 500 jumped 1.9% Tuesday to its first record close since June, buoyed by stronger-than-expected corporate earnings and another drop in oil prices.In this article.SPX.IXICSOXXFollow your favorite stocksCREATE FREE ACCOUNTMichael Burry attends "The Big Short" New York premiere at the Ziegfeld Theater in New York, Nov. 23, 2015.Andrew Toth | Filmmagic | Getty ImagesMichael Burry of "The Big Short" fame is sticking with his bearish wagers even as the S&P 500 surges to a record high, warning that the rally could still end in a sharp sell-off reminiscent of the 1987 stock-market crash."I continue to believe it is possible we are near a major top, and possible a 1987-type fall, but the S&P 500 making new highs likely will bring new money into the market," Burry said in a Tuesday Substack post. The S&P 500 jumped 1.9% Tuesday to its first record close since June, buoyed by stronger-than-expected corporate earnings and another drop in oil prices as hopes grew that the Strait of Hormuz would reopen to maritime traffic. The tech-heavy Nasdaq Composite soared 2.7%, extending its gain in just the first two days of the week to nearly 5%.Burry has been among Wall Street's most outspoken skeptics of the artificial intelligence boom, arguing that demand for AI infrastructure is being fueled by financing arrangements that may prove unsustainable. He said the market's advance is creating a self-reinforcing cycle, with declining volatility encouraging systematic investors to increase exposure."Remember, the market going up on falling volatility forces vol-t