Michael Burry's Oct. 17 Cassandra Unchained post frames a four-decade breadth-based bear view, likening today to the dot-com peak. He warns the market will fail in a way that lifts the median broken stock and notes passive money may lose steam, a dynamic that could favor equal-weight indices like RSP versus SPY over the next 6–9 months.
RSP benefits from a shift toward equal-weight strategies as investors seek diversification beyond the Mag 7. With RSP's AUM exceeding $100B and the S&P 500’s strength in 2026, the broader rally has drawn appetite to equal-weight exposure. Industry observers note Mag 7 lag and rising equal-weight options.
