The economy is not in great shape, despite what the Biden White House keeps saying.
Inflation is still very high, as are gas and food prices and unfortunately 2023 is not likely to be much better.
A famous investor named Michael Burry, who is known for calling the housing crisis, is making some financial predictions for the coming year and there is not a lot of great news.
The Daily Caller reports:
Michael Burry, Famous Investor Who Called Housing Crisis, Makes Another Prediction For 2023
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.
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.
See his tweet below:
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
Another well known investor, Peter Schiff chimed in with a reply to Burry:
CPI inflation is unlikely to fall as low as 2%, let alone go negative. But I agree with you that the Fed will return to QE and the official inflation rate will hit a new high. The unofficial actual rate will hit a new all-time record high.
— Peter Schiff (@PeterSchiff) January 4, 2023
Now is a good time to be conservative with money, if you can.