Investor Michael Berry warns of Wall Street sell‑off reminiscent of 1987

Investor Michael Berry, featured in the film “The Big Short,” posted on Substack that he believes U.S. equities are close to a major peak and could suffer a sharp correction similar to the 1987 market crash.

He points to the S&P 500’s new historic highs as potentially attracting fresh capital, but warns that overvaluation is fueled by AI‑related hype, private‑credit growth and other speculative factors. Berry also notes that upcoming events such as the U.S. midterm elections, the Jackson Hole symposium and central‑bank meetings could influence market direction.

Berry maintains short positions in several stocks and ETFs he deems overvalued, including the iShares Semiconductor ETF (SOXX), Micron Technology, Nvidia Corp., Caterpillar, Palantir, Tesla and Applied Materials, although his Nvidia short is currently unprofitable. He cautions that short‑selling is not suitable for most investors.