When three hedge fund titans all explain in words so simple a financial media channel morning show host can grasp that there is nothing behind this rally but smoke, mirrors, and a bearded academic, it seems more than a few people start to pay attention. Following Paul Singer and Kyle Bass [8], Stanley Druckenmiller "loves the market short-term, but hates it long-term," since Bernanke is "running the most inappropriate monetary policy in history." He warns, for it is a warning, that "markets will melt up," until the Fed is forced to tighten. He recommends shorting the AUD, and sees the commodity super-cycle as over, because, "supply-demand... is deadly." He also likes Google but not "tech companies that engage in financial engineering under advice of hedge fund managers."
Stan Druckenmiller:
- Decade of fast commodity demand is over
- China leverage and misallocation of resources similar to US 2005-2008.
- Bernanke running the "most inappropriate monetary policy" given circumstances in history
- No bear market until the Fed changes monetary policy'
- *DRUCKENMILLER: BERNANKE RUNNING INNAPROPRIATE MONETARY POLICY
- *DRUCKENMILLER: OVER SHORT-TERM, I EXPECT A ‘MELT UP’
- *DRUCKENMILLER: MARKETS ARE GOING TO GO UP, NOT DOWN
- Sees Australian Dollar Coming Down ‘Hard’
- Avoid commodity currencies in general
- He likes Google; does not like other tech companies which engage in financial engineering under advice of hedge fund managers