Michael Burry warns of a possible new stock-market "bubble" as S&P 500 hits records

Investor Michael Burry, known for correctly identifying the U.S. housing market risk before the 2008 financial crisis, has issued a fresh warning to Wall Street as the S&P 500 posts new record highs.

Burry says that the market’s current euphoria — much of it tied to expectations around artificial intelligence — could be inflating asset prices to dangerous levels and raises the possibility that the market is approaching a "big peak" that might be followed by a crash similar to 1987.

History and current bets

He points to the example of Black Monday on 19 October 1987, when the Dow Jones plunged 22.6 percent in a single day, as a reminder of how fast losses can compound once sentiment turns. Burry has not only warned investors but also taken positions: in June he disclosed that he was betting against stocks such as Nvidia, Tesla, Caterpillar and Applied Materials, and later increased exposure to Nvidia and Micron.

Burry’s central thesis is that the vast optimism around AI may be creating unrealistic expectations and overvaluations, particularly for companies tied to chips and infrastructure. He also highlights a paradox: record highs can draw more capital in, and when volatility is low some funds and algorithmic strategies may increase equity exposure — a mechanism that can flip into mass selling if the trend reverses sharply.

His focus extends to the huge amount of capital flowing into AI infrastructure; he believes market expectations in parts of the AI sector may have gone too far. Still, Burry cautions that a crash is not inevitable — timing market turning points is notoriously difficult, even for investors with strong prior calls.

Separately, the report adds that by 1 September ten Macedonian companies will get a chance to prepare for listing on the stock exchange.

Photo: press material from the event