"The big short" Michael Burry bets on the peak of the rally: "We are approaching a major top, and a 1987-style crash may occur."

Michael Burry, who gained fame as the "Big Short" investor, continues to maintain his bearish bets. Even as the S&P 500 index soars to an all-time high, he warns that this rally could ultimately end in a substantial sell-off resembling the stock market crash of 1987. I still believe that we might be approaching a major top and could see a 1987-style decline, but the new highs in the S&P 500 are likely to attract new money into the market, Burry wrote in a post on Substack on Tuesday. Remember, the market rises during periods of decreasing volatility, which forces volatility-target funds to leverage up and also brings in leveraged momentum strategies, he added. In light of the current rally, Burry stated that he continues to hold short positions in the iShares Semiconductor ETF, Micron, Nvidia, Caterpillar, Palantir, Tesla, and Applied Materials. The investor expressed confidence in the long-term prospects of these positions but noted that he would cut losses if the trading trends turned significantly adverse. He stated that all positions, except for the short on Nvidia, are currently profitable. Once again, shorting is not for everyone, Burry wrote. I have to short. Most people shouldnt.