Stanley Druckenmiller sees bears winning territory, according to the legendary investor’s recent speech at the 2022 Sohn Investment Conference.

Stanley Druckenmiller did not mince his words, warning of inflation, a recession, and a continuing bear market in 2023. 

Druckenmiller predicted in the summer of 2021 that inflation would erupt this year, and now the famed macro watcher says inflation is much higher than expected.

Indeed, the transitory inflation narrative pedalled by the Fed not long ago is now well in the rear mirror as yet another plunder forecast.

“Druckenmiller predicted in the summer of 2021 that inflation would erupt this year, and now the famed macro watcher says inflation is much higher than expected”

WEALTH TRAINING COMPANY

The fact that the stock market rallied when the global economy was in lockdown due to trillions of dollars of central bank liquidity has made a mockery of the global stock market. Stocks should have fallen in tandem with global economic activity. Now we have a rapidly declining economy, the highest inflation in decades, and trillions of dollars of wealth destruction as investment portfolios crumble. In short, households, businesses and investors are all worse off, and the central bank’s monetary policy is partly to blame.

Admittedly, supply-side shocks due to Russian sanctions and war in Europe are also to blame. But if the US and its allies did not prolong the war by sending billions of dollars of armaments, the Russian invasion, or reclamation of its former soviet union republic, Ukraine, would have been over in a few days. 

Moreover, sanctions on Russian gas, yet another shortsighted policy, have only resulted in strengthening Russian trade surplus as the world’s most populous countries, China and India, scoop up inexpensive Russian soft commodities and energy.

“supply-side shocks due to Russian sanctions and war in Europe are also to blame”

WEALTH TRAINING COMPANY

As we forecasted, the Russian ruble will strengthen with sanctions, particularly with the Kremlin’s demand  payment for commodities in the Rubles.

So the continuous gutting of the western middle class continues to be driven by policy.

Are the puppet masters conspiring to create a subsistent poor global glass?

Are those who pull the strings unknowing pursuing stupid policies, or is this all by design? 

You can not climb the apex of the human food chain by being stupid.Here is the clue,

“You’ll own nothing and be happy,” World Economic Forum. 

“Stanley Druckenmiller thinks the surprising part is the Fed’s slow response to counter rising prices” – Wealth Training Company

Stanley Druckenmiller sees bears winning territory, which is becoming a crowded trade

The billionaire investors believe inflation is much higher than expected.

May’s core US inflation was a shocker, coming in at 8.6%.

Stanley Druckenmiller thinks the surprising part is the Fed’s slow response to counter rising prices.

But rate hikes are no solution to cost-push inflation due to supply disruptions. Rate hikes will not stop household spending on non discretionary items, where most of the bulk of the inflation lies.

Already, the economy is in a rapid slowdown. Retail inventory bloating could be the beginning of deflation. 

It is not just the inflation that has caught the market by surprise, it is also the rate and pace of the economic slowdown.

The extent to which Stanley Druckenmiller sees bears winning territory depends on whether the Fed decides the pain of further rate hikes outweighs the benefit

December 2018 was one rate hike too many, and with stocks crashed the worse in that month than the Great Depression, the Fed was forced to capitulate with tightening.