Burry Warns of Near-Term Market Top, Sees 1987-Style Crash Ahead Despite Fresh Highs

Michael Burry says the market may be near a major top and could crash like 1987, even as the S&P 500 hits new highs. He remains bearish, holding SOXX puts and a short position, and says the key indicators are momentum and semiconductor names after July’s weakness. He notes the four-day, 5% rally to a fresh high is rare (seen at peaks in 1999, 2000, and 2020) and warns that record highs alone won’t change his stance, with volatility dynamics and leveraged funds potentially driving a reversal. He also mentions ongoing work on his ‘Heretic’s Guide’ analyzing hyperscalers.