S&P 500 Hits Record High, Michael Burry Warns of '1987-Level Crash'

The U.S. stock market has reached new highs, buoyed by strong corporate earnings and falling oil prices. Michael Burry, the protagonist of the film "The Big Short" and head of Scion Asset Management, has warned that a major crash similar to the 'Black Monday' of 1987 could occur, maintaining his bearish stance. According to CNBC on the 4th, Burry stated through his Substack that "we are nearing a major peak, and there is a possibility of a crash like in 1987." However, he added that as the S&P 500 index hits record highs, new capital could flow into the market. On that day, the S&P 500 index rose by 1.9%, marking its first record high since June, while the Nasdaq index surged by 2.7%. Burry pointed out that the funding structure for AI infrastructure demand is unsustainable, analyzing that the current rise in stock prices is misleading. He warned of market overheating due to excessive leverage and stated that he is maintaining short positions on iShares Semiconductor ETF (SOXX), NVIDIA, Micron, and Tesla. Burry emphasized that "short selling is not a strategy for everyone, and the majority of investors should avoid it."

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