Michael Burry, a “Big Short” investor, warns of another inflation spike and predicts that the US will be “in recession by any definition

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Inflation in the United States has peaked, according to hedge fund manager Michael Burry, who is renowned for predicting the financial crisis of 2008. However, there will be another inflation spike.

Economic Prognoses for 2023 from Michael Burry

Michael Burry, a well-known investor and the creator of the investment business Scion Asset Management, has released his economic forecasts for 2023.

Burry is well recognized for being the first investor to predict and benefit from the US subprime mortgage crisis, which took place between 2007 and 2010.

On Sunday, Burry tweeted, “Inflation peaked.

In 2H 2023, the CPI is probably going to drop, maybe even become negative, and the US will likely be in a recession by any standard.

On Twitter, a lot of users agreed with Burry.

Deaton wrote on Twitter, “I think this is accurate.” “The smart kids agree: lower inflation will be transient, until the Fed turns up the money printers and does it again,” stated economist Peter St. Onge.

Karel Mercx, an expert in investments, said: “Michael Burry has a point… There are rarely single waves of inflation, which typically arrive in waves (see 1970s CPI chart).

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Mercx shared a consumer price index (CPI) graph.

By tweeting, “Agreed, however the next inflationary boom could end in a decade or more,” investor Kerry Balenthiran agreed with Burry.

I will disagree with his prognosis of inflation. Deflation will last for a very long time.

He asserted that bubbles take a very long time to re-inflate.

Burry has issued a number of economic cautionary tales.

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