Current Bear Market ‘Has a Ways to Run’, Warns Hedge Fund Manager Druckenmiller -Breaking
By Senad Karaahmetovic
American hedge fund manager Stanley Druckenmiller believes that “we’re six months into a bear market,” adding that it’s very likely that the current bear market “has a ways to run,” he said Thursday at the 2022 Sohn Investment Conference
Druckenmiller believes that after the Federal Reserve became more hawkish against inflation and with the Index falling more than 20% off its previous high, the economy will likely fall into recession next year.
Last year, the investor criticized the Fed’s bank policy, citing a “raging mania” in every market.
“That period was incredibly costly because a lot of assets were purchased during that period that a lot of people moving out the risk curve will lose a lot of money on,” said Druckenmiller then.
Greenlight Capital President and Founder David Einhorn said that inflation, which is at an all-time high, will likely continue. This was partly because of a dearth in investments in mining, housing, oil, paper and cement.
Druckenmiller stated that he had been investing in stocks and fixed income, but instead, has invested in core commodities like,,, and. Former chairman of Duquesne Capital and President said that the hedge fund had exited positions at Alphabet, Airbnb (NASDAQ) and others. Carvana (NYSE: ) In the first quarter of his exposure increased to Chevron Corp. (NYSE:)
Druckenmiller, on the other hand believes bonds won’t endure the current downturn like they did in the past due to the fact that the US Treasury yields have been significantly lower than inflation. Druckenmiller stated that he plans to continue shorting stocks in the future, and is willing to take a bet against it.
“If you’re predicting a soft landing, it’s going against decades of history,” he said.