Michael Burry predicted a drop in the CPI in 2023 that could push the US economy into recession.
Burry is famous for accurately predicting the subprime mortgage crisis of 2007-2010 in which he profited greatly from the market downturn. The ‘Big Shorts’ giant thinks the signs of a recession are clear, as the wild market capitalization remains intact.
The famous American Michael Burry predicted that the U.S economy will enter the recession in the second half of 2023. According to Burry, prices have gone up. However, this is not the final figure of the current cycle. He says the next peak in inflation will be the Federal Reserve’s response to the impending recession and the government’s efforts to stimulate the economy.
In his recent tweet, Burry predicted that the CPI will fall to a low level, triggering a series of events leading to another increase in inflation. Burry, the inspiration for the famous character in the 2015 film “The Big Short,” played by Christian Bale, is known for his tenacity in marketing.
His accurate predictions about the mortgage crisis from 2007 to 2010 are what made him stand out. He quit the bond market in 2007, making over $100 million in personal income. Recently, he has talked about the current market progress and, as expected, hit the bullseye with many of his predictions. In June 2021, before the current bear market, Burry predicted a digital marketing collapse.
In a now-deleted tweet, he described the then-expected crash as “the biggest stock market bubble in history.” Soon, the stock market fell from an all-time high, and many assets lost more than 80% of their value.
In April 2022, Burry warned of an impending crash in US stocks, seeing them as overvalued. Since then, nearly all stocks in the United States have fallen in value as the broader economy struggles to stay afloat.
The rate of sales in the United States increased to 9.1% in June 2022. In November, it fell to 7.1%, although the factors related to the economy cause an increase in inflation. Falling interest rates, the crisis from COVID-19, and Russia’s invasion of Ukraine have affected the economy. In a recent tweet, Burry explained by saying:
The Fed will cut and the government will stimulate. We will have another increase in inflation. It is difficult.
Burry thinks that the signs of a bad economic future are clear and easy to understand. According to him, the community must support.
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