Michael Burry warns of possible 1987-style market crash

In a Tuesday Substack post, investor Michael Burry — who rose to fame for betting against the housing market before the 2008 financial crisis — said he believes markets could be close to a significant top. He compared the current environment to the lead-up to the October 1987 crash, when the Dow Jones plunged over 20% in a single day. Burry did not specify a timeline for a potential downturn but confirmed he is positioned against the ongoing rally. The warning comes as major US indices sit at record highs amid strong investor optimism. Reactions were mixed, with some seeing it as a timely caution and others dismissing it as another overly bearish call from a well-known skeptic.