At the recent 2022 Sohn Investment Conference, Stanley Druckenmiller of Duquesne Family Office relayed his belief that “we’re six months into a bear market [which still]…has a ways to run,” according to an article in BNN Bloomberg. More losses have occurred because of the Fed’s aggressive moves to combat inflation, which will likely result in a recession next year, he added.

A lot of ground was lost last year, Druckenmiller believes, when the central bank failed to rein in “a raging mania in all markets.” For his own part, Druckenmiller has steered away from currencies and towards commodities like oil, gold and copper this year, while also betting against stocks and fixed income. In the first quarter of 2022, he dumped shares of Alphabet, Airbnb, and Carvana and bought up shares of Chevron, the article reports. He’s also reluctant to own bonds; with inflation rising so much higher than yields, Druckenmiller says that he’s not sure bonds will withstand a downturn. At the same time, he’s “much less comfortable being short fixed income,” he told the conference attendees, adding that he’s learned from past bear markets that shorting too aggressively during a bear market can lead to a painful downfall when the market rallies. But he will short stocks again if the opportunity arises, and also expects to bet against the dollar before the year is over.

David Einhorn of Greenlight Capital also appeared at the conference, and told the crowd that the biggest current issue in the market is inflation, which is likely to persist. He pointed to under-investment in commodities such as cement and paper, as well as housing, as a root cause, according to BNN Bloomberg. As for the Fed’s ability to engineer a soft landing, that’s “going against decade of history,” Druckenmiller said.

According to the Bloomberg Billionaires Index, the 68-year-old Druckenmiller, who managed money for billionaire George Soros for over 10 years, has a net worth of about $10 billion.