Stanley Druckenmiller warns of an Endgame in Equities ~ He’s into Gold
He makes out quite a compelling case for an endgame in Equities with this address earlier this month at the celebrated Annual Sohn Investor Conference of Hedge Fund Managers
He’s a self made Billionaire famous largely for the US $ One Billion Gains made in quick time in 1992 when he was with George Soros & they shorted the Pound
His own Fund Duquesne gave reportedly average returns of 30% from 1986 to 2010 when he converted it into a Family Office as he feared he could not continue giving good returns
He’s greatly nervous about the financial leveraging that continues in US & China & has been critical of the US Fed & it’s Governors for over a decade now
“The Fed has borrowed more from future consumption than ever before…..While policymakers have no end game, markets do.”
He supports his nervousness with compelling statistics
- The US Total Credit Market Debt as a % of GDP is 350%
- The Net Debt vs Operating Cash Flow shows a current 5 year divergence like never before post World War II
- The above Indicating that Corporate Debt was not used productively for R & D & Capex but rather for BuyBacks & M & A
He is nervous about China & Japan both
Worth Noting his Views