Hedge fund manager Michael Burry famous for predicting Inflation has peaked in the United States, according to the financial crisis, but it is said that inflation will skyrocket again. He expects the U.S. economy to slip into a recession “by any definition.”
Michael Burry’s Economic Forecasts for 2023
Renowned investor and founder of investment firm Scion Asset Management, Michael Burry announced economic forecasts for Burry is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that he experienced from 2007 to 2010. A movie starring Christian Bale.
Burry tweeted on Sunday: “Inflation has peaked. But this is not the last peak of this cycle.” He continued:
2023 In the second half of the year, the consumer price index will fall and possibly turn negative, and the US is likely to enter a recession by definition. Feds will cut rates and the government will provide stimulus. And there will be another inflation spike. It’s not difficult.
Many on Twitter agreed with his Burry. Attorney John E. Deaton tweeted, “I think this is accurate.” Economist Peter St. Onge wrote:
Investment expert Karel Merckx commented: His five most dangerous words in investing are again “this time it’s different”.
Investor Kelly Valentilan agreed with Barry, tweeting: This sounds a lot like the long bull market from 1947 to his 1965. In that case, post-war inflation subsided, followed by an inflationary environment that finally peaked in 1980.
Others took a different view. For example, former broker Rob Bezjan believes there will be deflation. “I stand on the other side of his inflation forecast…we will be in deflation for a long time. It will take a very long time for the bubble to inflate again,” he opined. 40} Burry has many warnings about the US economy. In November 2022, he warned of a “long recession.” In May, investors in big shorts warned of a looming consumer recession and further earnings problems. In April, the Fed said it was “not going to fight inflation,” saying, “The Fed is all about reloading the monetary bazooka so it can embark on financing fiscal puts.” emphasized.
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