Michael Burry, made famous after Christian Bale portrayed him in the hit film “The Big Short,” shared another financial prediction for 2023 on social media Sunday.
Burry told his Twitter followers “inflation peaked,” but that we shouldn’t get comfortable, as it’s not the last peak of this cycle. He furthered we’re likely to see the Consumer Price Index (CPI) drop, possibly into a negative by the second half of 2023, and the nation will be in a full-blown recession by anyone’s definition of the term.
“Fed will cut and government will stimulate. And we will have another inflation spike. It’s not hard,” Burry said, like the blunt force of nature he is.
Inflation peaked. But it is not the last peak of this cycle. We are likely to see CPI lower, possibly negative in 2H 2023, and the US in recession by any definition. Fed will cut and government will stimulate. And we will have another inflation spike. It’s not hard.
— Cassandra B.C. (@michaeljburry) January 2, 2023
Burry is something of a modern soothsayer when it comes to the economy. He liquidated almost all of his firm’s portfolio by the second quarter of 2022 and warned of a huge market crash before anyone else. (RELATED: NYT Idiots Ignore Dire Financial Warnings For 2023 From Leading Experts)
Months later, fellow financial experts such as Nouriel “Dr. Doom” Roubini and billionaire investor Stanley Druckenmiller made similar statements over the financial future of 2023. Druckenmiller was so concerned about the long-term impacts of seemingly mass-global mismanagement of just about everything that he joked about taking cyanide to avoid the fallout.
Burry’s latest forecast comes as a majority of big banks are finally listening to these professionals and echoing the data that indicates we’re heading for a serious economic downturn in 2023. It’s unclear why many banks were so far behind these proven experts.