Michael Burry, head of Scion Asset Management is currently predicting a higher inflationary trend for the U.S. economy. In a recent Twitter (NYSE:TWTR) post, which was obviously deleted later, Burry took an opposing stance to billionaire Elon Musk and famed hedge fund manager Cathie Wood’s deflationary predictions.
The investor who made billions of dollars by shorting the housing bubble of 2008, cited that “In 1978-79, rising velocity trumped falling money supply to drive inflation higher and higher.” Burry noted that currently too, the velocity of money is increasing faster than the decline in money supply in the economy. This, he predicts, is a sign of higher inflation.
Meanwhile, Burry also pointed out the quantitative tightening policy adopted by the Federal Reserve effective September.
Furthermore, Burry supplied the thought that the current downturn may be worse than in 2008. “What interest rates are doing, exchange rates globally, central banks seem reactionary and in CYA mode,” opined Burry.
Recently, “The Big Short” famed investor also tweeted his thoughts on electric vehicle maker Tesla (NASDAQ:TSLA) and co-founder Musk.
“If I am tweeting this you can bet I am not short it… But I should be,” he wrote about Tesla, which has been one of his favorite shorted stocks of all times. Burry has constantly taken a dig at both Tesla and Musk citing ridiculous stock pricing and inferior battery technology.
What is the Future Price of Tesla Stock?
On TipRanks, TSLA stock has a price target of $311.21, which implies 16% upside potential to current levels. Tesla stock, which is covered by 29 analysts, has a Moderate Buy consensus rating based on 18 Buys, six Holds, and five Sells. Meanwhile, the stock has lost 32.9% so far this year.