The hedge fund manager is known as a lateral thinker on Wall Street. Often he is right.
(Photo: © 2010 Bloomberg Finance LP)
Dusseldorf Declining inflation figures in the USA triggered a recovery on the stock exchange last autumn: the leading US index, the Dow Jones, is now 16 percent above its 52-week low, and the market-wide S&P 500 is ten percent. The decline in the inflation rate could only be temporary, warns Michael Burry.
The star investor wrote on Monday morning in a since-deleted post on the short message service Twitter: “Inflation has peaked. But it is not the last peak in this cycle.”
It is likely that the US economy will be “in recession by any definition” this year. “The (US Federal Reserve) Fed will cut interest rates and the government will stimulate the economy and we will see inflation continue to rise,” predicts Burry.
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