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Burry warns S&P rally risks Black Monday-like crash

8/5/2026

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Summary

Story summary

Michael Burry warned that the S&P 500 rally could end in a sell-off like the 1987 “Black Monday” crash.
He said the market may be a top even as the S&P 500 rose 1.9% because falling volatility pushes volatility-targeting funds and momentum strategies to add leverage.
He shorts SOXX, Micron, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials, with all profitable except Nvidia, warning short selling is unsuitable for most investors.

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Story summary

Michael Burry warned that the S&P 500 rally could end in a sell-off like the 1987 “Black Monday” crash.
He said the market may be a top even as the S&P 500 rose 1.9% because falling volatility pushes volatility-targeting funds and momentum strategies to add leverage.
He shorts SOXX, Micron, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials, with all profitable except Nvidia, warning short selling is unsuitable for most investors.