Michael Burry Warns of the Bullwhip Effect, Says the Fed Could Reverse Course

2022.06.27 20:31

Michael Burry Warns of the Bullwhip Effect, Says the Fed Could Reverse Course

Michael Burry, the investor made famous by the movie “The Big Short,” and the founder of Scion Asset Management, said in a tweet Monday that the “Bullwhip Effect” is happening in the retail sector.

Burry added that this could lead to the Federal Reserve reversing its rate rises and its Quantitative Tightening policy.

The Tweet reads:

The tweet also links to an article from CNN, which states retailers are considering allowing customers to keep items they return so they don’t have to take them back and add them to swelling inventories.

It’s not the first time in recent months that Burry has raised concerns about the economy. In May, he tweeted that the current market conditions are “like watching a plane crash.”