Michael Burry (of The Big Short) has recently warned of further inflation peaks throughout 2023. Earlier this month, Burry tweeted that CPI may have peaked for now, but is not the last peak of the cycle, hinting that political pressures will cause the Federal Reserve to lower interest rates to stimulate the U.S. economy out of its impending 2023 recession. So could Burry be right? And why is it that other value investors like Charlie Munger agree with his reasoning?
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★ ★ CONTENTS ★ ★
0:00 Michael Burry’s Bold Predictions
1:22 Burry Tweets About 2023 Inflation
2:50 The Current Macroeconomic Situation
4:10 Political Pressure Causing Inflation Cycles
4:45 The Great Inflation of the 1970s
5:50 Charlie Munger Agrees With Michael Burry
7:20 The Fed’s Plan to Conquer Inflation
8:55 Could Michael Burry Be Right?
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Michael Burry, the hedge fund manager famous for predicting the subprime mortgage crisis in 2008, has issued a stark warning about the threat of inflation, predicting a massive spike in prices in 2023.
Burry made his name by betting against the housing market, making a fortune for himself and his investors. Now, he’s sounding the alarm about another economic disaster – this time caused by inflation.
In a series of tweets, Burry outlined his concerns about the Federal Reserve’s monetary policy, warning that the central bank’s decision to print trillions of dollars to stimulate the economy could result in a massive surge in inflation.
“Prepare for #inflation,” Burry wrote. “We import massive amounts of inflation through our trade deficit. #AmericaFirst will mitigate this, but not in time.”
Burry’s warning comes amid a growing debate among economists and policymakers about the possibility of inflation returning to the U.S. economy. The Federal Reserve has vowed to keep interest rates low and to continue buying assets, including Treasuries and mortgage-backed securities, until the economy has fully recovered from the pandemic.
But some economists worry that these policies could lead to a surge in inflation as prices for goods and services rise. Burry believes that this inflation could hit the U.S. economy hard in 2023.
He argues that the country’s trade deficit, which has ballooned in recent years, will make it difficult to contain inflation. The U.S. imports more than it exports, which means that the country is at the mercy of foreign suppliers when it comes to prices.
Burry suggests that the solution to this problem is to reduce the trade deficit by becoming more self-sufficient. He advocates for an “America First” policy that would prioritize domestic production and reduce reliance on foreign suppliers.
While Burry’s warning about inflation might sound alarmist, it’s worth noting that he has a track record of making accurate predictions. He famously predicted the subprime mortgage crisis that caused the financial meltdown in 2008, earning his investors billions of dollars.
Whether or not Burry’s prediction about inflation comes to pass remains to be seen. But his warning should serve as a wake-up call for policymakers and investors alike, who need to start thinking about the potential consequences of the Federal Reserve’s policies and the impact they could have on the U.S. economy.
I like seeing this kind of stuff on a channel that isn't dedicated to doom and gloom, make me think it might actuall happen soon. I've been a doomer and gloomer since 2015 and I just can't see this loose money policy going forever, but markets can remain irrational longer than most can stay solvent.
Another policy mistake might be to think the economic conditions of today are the same as the 1970s.
All the Tesla fanboys shit all over him for having a TSLA short as Scion's biggest position, but as usual he had the last laugh. Their PE ratio was like 1400+ at one point, that's total madness.
whatever this man says, do the opposite, as in all the rest of the ANALysts!!
Sup with that hair
Low interest rates are bad for people too. It causes safe investments to suffer, insurance premiums to skyrocket, and housing to become unaffordable.
He was not wrong. Inflation is already back up. Interest isn't nearly high enough and inflation isn't going anywhere. We will hit recession before inflation stops which will cause Powell to try to stop it with lower rates but he won't be able to get them low enough.
“How to secure wealth during a crisis” – Michael Burry
Clickbait! This was not Michael Burry on your title, it was Christian Bale.
During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?
America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
The way I see it this recession most likely has an external cause. The United States is losing influence as a federal currency for the first time in decades. They don't have any more economies to utilize to control their inflation, and less money is being spent on stock and oil trading than previously. They all lend credence to the hypothesis that a new multilateral world order may be in the works.
so how is the labor market the same as the 70's? just saying there will be a recession just different.
They drove up house prices to get everyone into huge debt. Now they increase interest rates so nobody can afford the payments. Last step is to foreclose and take the properties away from the owners. You end up owning nothing but you will be happy?
Or pull a Nixon and threaten big business and unions that attempt to pressure prices. Put them in jail for trying to raise prices or wages.
Can we please stop these spam comments where someone asks how to invest and they respond on an alt with fake advice?
I mean I have a 300K portfolio and I grew it by 97.6% by just staying at home working 5 minutes a week, but if anyone is interested it's hard for me to add them to my pyramid. I mean… investment circle.
Recent events indicate that inflation is at an all-time high and that the economy is rapidly entering a recession. How can I grow my portfolio in order to outperform inflation while maintaining a successful long-term strategy? I've read about investors making around $250k in this current crashing market, and I'm looking for ideas on how to make similar profits.
Coupled with the housing market, this is going to really suck.
With inflation running at a four-decade high, the Recession is now the ‘most likely outcome for the economy and I cannot imagine being a victim of circumstances. My portfolio suffered a big hit, holding it further won’t be any good. I've heard of people netting hundreds of thousands this red season. How can I ensure this?