Stanley Druckenmiller at CNBC Delivering Alpha
“We’re taking this massive gamble where you threaten 40 years of credibility with inflation, and you’re blowing up the wildest raging asset bubble I’ve ever seen.”
It’s strange to see Druckenmiller so active in public. This is his third appearance in the past two weeks. The mere fact that he is so public is almost more interesting than his message (which has remained consistently bearish since the Sohn conference).
Maybe he has such high conviction that he wants this call to be part of his legacy. Or he wants to influence policymaking and is talking his book. Either way, he minced no words.
“I made a New Year’s resolution that year not to be on TV, but when I saw what was going on, I couldn’t control myself. I was just incredibly frustrated with what to me looked like a Fed that was just taking unbelievable risks.”
A few highlights:
The Fed lost an asymmetric bet.
Made a mistake? Fix it. Now.
Lighting the match on inflation
Re: The Bank of England
“That 30 trillion has created all sorts of stuff that’s probably under the hood. I didn’t know about this thing happening, and you’re going to see more of it because that’s what happens during asset bubbles. Behavior changes.”
Stocks for the long-term. But what is long-term?
Bull market conditions? Reversed.
You can still make money (as a trader)
“You could have made plenty of money in the ’70s. At various times we had two 60 percent rallies.”
Will interest expense and entitlements eat America?
The 2023 recession (“I could be wrong, but…”)
Let’s not even talk about black swans…
Shorting this market is too difficult
Crypto is tough while central banks are tightening (but maybe once people have lost all hope?)