Michael Burry, the prescient hedge fund manager who made a killing shorting subprime loans in the 2008 housing crisis and whose exploits were featured in the movie "The Big Short," now predicts inflation could plague the U.S. for several years.
Burry blames unresolved supply chain disruptions and geopolitical tensions caused by Russia and China,
Fortune reports.
"Onshoring/blue collar shortages put global supply chain raise long term inflation's floor even as bullwhip cycles lower to that end," Burry recently tweeted, removing his awkwardly worded comment soon after posting, as Burry often does.
Economists' "bullwhip" term refers to inventory inbalances due to imprudent calls on consumer demand.
Burry went on to warn that China will make an aggressive "move" on Taiwan in 2023 and that Russia's war in Ukraine could spread to Lithuania.
Earlier this month, Burry
predicted that the downturn in stocks is only halfway over.
“Multiple compression” factors have caused the market’s steep decline in the first half of 2022, tweeted Burry, the 51-yaer-old founder of hedge fund Scion Asset Management.
In the second half of the year, “earnings compression” will put further pressure on stocks, which are only halfway under water, Burry maintains.
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