Michael Burry, the investor known for his early bet against the 2008 housing market, has issued a stark warning of a potential market crash comparable to the 1987 Black Monday event.
His caution comes as the S&P 500 reached a new record high, fueled by a relentless rally in artificial intelligence stocks.
Burry maintains his bearish outlook, arguing that the current market environment is dangerously overextended despite the prevailing optimism on Wall Street.
The warning highlights growing divergence between institutional sentiment and retail-driven momentum in the technology sector.
While major indices continue to climb, Burry’s stance reflects broader concerns about valuation extremes and concentration risk within the AI trade.
His comments add to a chorus of skepticism from investors who view the current rally as unsustainable, pointing to historical parallels where rapid tech-driven booms preceded sharp corrections.