Stan Druckenmiller is referred to as one of the world’s best investors, having founded Duquesne Capital and closed the business with over $12 billion in assets. He also acted as the lead portfolio manager for the Quantum fund for 12 years and famously ‘broke the Bank of England’ in 1992 after shorting, along with George Soros, the British pound, allegedly making $1billion as a result.
Speaking at the New York Times DealBook Conference in New York, Druckenmiller talked stocks, the Federal Reserve and the euro.
“I could see myself getting bearish, and I can’t see myself getting bullish,” said Druckenmiller referring to his own stocks.
Referring to the euro, Druckenmiller also said he was “shorting” it. “I have never seen a currency move of this intensity last 11 months. The nice thing about currency moves is they tend to last two or three years but they usually take a time out somewhere in the middle. I have thought we’re in a time out like that in the euro and now look what’s happening.”
He also talked about how everyone is only looking at the short-term these days as opposed to the long-term. Druckenmiller said he didn’t make long-term investments but does manage for the long-term with a series of short-term investments.
"I love the title of your conference because whether it's government, business, the Fed, or money managers, everybody is managing for the short term now and that is the problem with the Fed.
“I think there has been such a misallocation of resources, the chickens will come home to roost.”