, Columnist
Michael Burry's 'Bullwhip' Tweet Deserves Serious Attention
The hedge fund investor has hit on an uncomfortable truth for those expecting more inflation and endless Fed rate hikes.
Famed hedge fund manager Michael Burry’s latest call is a bold one.
Photographer: Astrid Stawiarz/Getty Images.
This article is for subscribers only.
Hedge fund manager Michael Burry issued a tweet Monday suggesting that the Federal Reserve may pause or even reverse its campaign of interest-rate hikes:
What he’s referring to with the “Bullwhip Effect” is the deflationary effects of retailers holding too much inventory. The theory is that they will eventually have to drop prices to relieve themselves of the goods they have stockpiled.