**["The Big Short" Burry Issues Another Warning: U.S. Stocks May Be Near a Peak, 1987-Style Crash Not Ruled Out]** BlockBeats News, August 5 — Michael Burry, the investor made famous by the movie *The Big Short*, has once again issued a bearish warning about the market. He stated that although the S&P 500 Index has recently continued to hit all-time highs, the market may be nearing a significant peak, and a crash similar to the 1987 stock market crash cannot be ruled out. On Tuesday, Burry wrote on Substack that the market's rise may be forming a self-reinforcing mechanism. As volatility decreases, volatility-targeting funds may increase leverage, while momentum strategies could further expand risk exposure, thereby driving more capital into the market. The recent record highs in the S&P 500 Index have been primarily driven by better-than-expected corporate earnings and the expectation of oil price declines due to the resumption of shipping in the Strait of Hormuz. The Nasdaq Composite Index has risen nearly 5% over the first two trading days of this week. However, Burry has not changed his skeptical stance on the AI investment frenzy. He believes that current investments in AI infrastructure partly rely on financing models that are difficult to sustain in the long term. He continues to hold several short positions, including on semiconductor ETFs, Nvidia, Micron, Tesla, Caterpillar, Palantir, and Applied Materials. Burry noted that, apart from the Nvidia short, all other short positions are currently profitable. However, if market trends continue to move against him, he will choose to cut losses and exit. He also reminded investors that shorting is not suitable for most people: "I must short, but most people should not attempt it." [Original Link]