Hedge Fund manager Michael Burry made his mark forecasting and hugely profiting from the sub-prime collapse and consequent GFC.

He has tweeted on his views of what will trigger a round of Federal Reserve rate cuts:

  • the “Bullwhip Effect”
  • the deflationary effects of retailers holding too much inventory
  • theory is that they will eventually have to drop prices to relieve themselves of the goods they have stockpiled

Burry deleters his Twitter account from time to time, but he's back.

rate cut fed retail 28 June 2022

The inventory concerns have been around for a few months now, and along with subsiding commodity prices since earlier this month, doubts on a continuing inflationary spiral are rising. There are still plenty of indications inflation has not yet gone away, of course.

Burry is in the slowing inflation ahead camp. If so its going to be very bullish for bonds and equities, both of which have been sold off.