‘Big Short’ Investor Michael Burry Warns of Another Inflation Spike — Expects US to Be ‘in Recession by Any Definition’
Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, says inflation has peaked in the U.S. but there will be another inflation spike. He expects the U.S. economy to be in a recession “by any definition.”
Michael Burry’s 2023 Economic Predictions
Famous investor and founder of investment firm Scion Asset Management, Michael Burry, has shared his 2023 economic predictions. Burry is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.
Burry tweeted Sunday: “Inflation peaked. But it is not the last peak of this cycle.” He continued:
We are likely to see CPI lower, possibly negative in 2H 2023, and the U.S. in recession by any definition. Fed will cut and government will stimulate. And we will have another inflation spike. It’s not hard.
Many people on Twitter agreed with Burry. Lawyer John E. Deaton tweeted: “I believe this is accurate.” Economist Peter St. Onge wrote: “The smart kids agree: lower inflation will be transitory, then Fed cranks up the money printers and does it again.”
Investment specialist Karel Mercx commented: “Michael Burry has a point … Inflation usually comes in waves, and there is rarely one wave (see 1970s CPI chart). The five most dangerous words in investing are still: ‘this time it is different.’”
The consumer price index (CPI) chart Mercx shared. Source: Twitter.
Investor Kerry Balenthiran concurred with Burry, tweeting: “Agreed, but the next inflationary spike could end in a decade or more. This is very much like the 1947 to 1965 secular bull market. In that case, there was a post-war inflation that quietened down, followed by an inflationary environment that ultimately peaked in 1980.”
Some people offered alternative viewpoints. Former broker Rob Bezdjian, for example, believes there will be deflation. “I will take the other side of his inflation prediction … We will be in deflation for a long time. Bubbles take a very long time to re-inflate,” he opined.
Burry has shared numerous warnings about the U.S. economy. In November 2022, he warned of “an extended multi-year recession.” In May, the Big Short investor cautioned about a looming consumer recession and more earnings trouble. In April, he said the Federal Reserve “has no intention of fighting inflation,” emphasizing: “The Fed’s all about reloading the monetary bazooka so it can ride to the rescue & finance the fiscal put.”
Tags in this story big short, Big Short Michael Burry, michael burry, Michael Burry another inflation spike, Michael Burry economic predictions, michael burry inflation, Michael Burry inflation peaked, Michael Burry predictions, Michael Burry recession, Michael Burry US economy, Michael Burry US recession
Do you agree with Michael Burry about inflation and that the U.S. economy will be in a recession? Let us know in the comments section below.
IMF Warns of Tough Year Ahead for World Economy Citing Slowdown in US, EU, China ECONOMICS | 21 hours ago Economist Peter Schiff Predicts Inflation ‘About to Get Much Worse’ — US Dollar Facing ‘One of Its Worst Years Ever’ ECONOMICS | 24 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Reviewing El Salvador’s Bukele Predictions for 2022: What Went Wrong?
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% … read more.
Fidelity Investments Launches Crypto, Metaverse ETFs — Says ‘We Continue to See Demand’ Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn’t Be Surprised if Stocks Fell 40% Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Fed’s Bullard Wants to Raise Bank Rate to 3.5% by Year’s End, Hints at 75 Basis Point Rate Hike