In a recent CNBC interview, hedge fund manager Stanley Druckenmiller said that the market’s comeback in recent weeks has “humbled” him and that he underestimated the power of the Fed. Druckenmiller explained his concerns regarding recent years of “easy money” and the surge in corporate debt: “When Covid hit, I was pretty much of the view that there was a good chance that the credit bubble had finally burst and the unwinding of that leverage… Read More
Legendary investor Stanley Druckenmiller has moved heavily into Treasury bonds, a “sign of his downbeat view in the wake of the Trump administration’s escalation of the trade war with China.” This according to an article in Chief Investment Officer. The article reports that Druckenmiller reallocated his assets after President Trump tweeted in early May that Washington was hiking tariffs on Chinese goods to 25% from 10% because of what he termed bad faith from China’s negotiators. During… Read More
In an article for The Wall Street Journal, co-authors Stanley Druckenmiller (chairman and CEO of Duquesne Family Office LLC) and former Federal Reserve Board member Kevin Warsh argue that the Fed should suspend its “double-barreled blitz of higher interest rates and tighten liquidity.” “The Fed created quantitative easing as a novel crisis-response tool a decade ago,” the article explains. “It bought assets from the public and stocked them away for safekeeping. Market participants understood the… Read More
In last week’s Barron’s, Oaktree Capital’s Howard Marks reflected on the presidential election and offered a wealth of insight regarding both its complexities and its multi-layered and far-reaching implications. With specific regard to the markets, Marks posed the question: “How could the expectation of a Clinton victory make stock prices rise, and then the reality of her defeat make them rise further?” He explained: “The market often fails to act rationally in the short run,… Read More
As the hedge fund industry continues to struggle to justify high fees and awful returns, some of this year’s speakers at the Sohn Investment Conference addressed how the largest funds are bracing for what’s ahead. The conference, an event held annually in New York and touted as “the premier investment event”, brings together Wall Street’s elite to exchange ideas and share insights (while raising money for pediatric cancer research). Forbe’s offered an overview of the… Read More
Retired star hedge fund manager Stanley Druckenmiller says investors should be wary because the Federal Reserve’s loose money policies have yet to come home to roost.