Burry warns of a 1987-style top ahead of new market highs

Hedge fund investor Michael Burry says the market could be near a major top and potentially suffer a 1987-style crash even as the S&P 500 hits a fresh close and the Nasdaq climbs, driven by strong earnings and lower oil prices. He argues the rally is feeding a self-reinforcing cycle via falling volatility and levered strategies, and he remains short in SOXX, Micron, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials, though he would cut losses if those trades move decisively against him; the article notes his skepticism about the AI boom despite the broader market gains.