'Big Short' investor Michael Burry predicted the inflation spike a year ago - and sounded the alarm multiple times in February
Added 05-14-21 06:14:02am EST - “"When we start working and playing again, inflation may be in store," the Scion Asset Management chief said in April 2020.” - Businessinsider.com
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Posted By TheNewsCommenter: From Businessinsider.com: “'Big Short' investor Michael Burry predicted the inflation spike a year ago — and sounded the alarm multiple times in February”. Below is an excerpt from the article.
Michael Burry warned the post-pandemic reopening could cause inflation to spike as early as April last year — mere weeks after the first lockdowns in the US. His prediction was proven right this week by data showing consumer prices jumped 4.2% year-on-year last month, the sharpest increase in 11 years.
"When we start working and playing again, inflation may be in store," the investor told Bloomberg for a story published on April 7 last year.
Burry is best known for anticipating the collapse of the US housing market in the mid-2000s, and making a billion-dollar bet on that outcome. That episode of his career was immortalized in the book and movie "The Big Short." He also helped lay the groundwork for the meme-stock frenzy earlier this year by investing in GameStop and pushing for changes at the retailer back in 2019.
The Scion Asset Management chief ramped up his inflation warnings in February of this year. He cautioned that stimulus checks, the Federal Reserve 's continued pumping of liquidity into markets, and the reopening of large parts of the economy were likely to drive prices higher.
"Prepare for #inflation," Burry tweeted on February 19. "#Inflation pressure building. The Fed is monetizing $80 billion of Treasury debt per month, and now comes $Trillions in stimulus/debt + reopening," he tweeted four days later.
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