Billionaire investor Stan Druckenmiller (Stan Druckenmiller) warned that everything is in a bubble, especially cryptocurrencies, meme stocks, stocks and bonds. Druckenmiller emphasized: “This bubble is everywhere, in every asset on the planet.”
Druckenmiller’s warning: every asset is in a bubble
Stan Druckenmiller had a conversation with US billionaire investor and hedge fund manager Seth Klarman at the Boston Investment Conference last week to discuss bubbles and value investing.
Druckenmiller is the Chairman and CEO of Duquesne Family Office LLC. He was previously the managing director of Soros Fund Management, where he was responsible for funds with assets valued at US$22 billion. According to Forbes’ list of billionaires, his current personal net worth is US$6.8 billion.
According to reports, Klarman, CEO of the hedge fund Baupost Group Ask He: “If everyone pays attention to the bond market and the bond market is in a bubble, then everything is a bubble. Is this fair?” Druckenmiller replied:
Yes, cryptocurrencies, meme stocks, art, wine, stocks… this bubble is everywhere, every asset on the planet.
Druckenmiller emphasized that the current bubble is not as narrow as the Internet bubble. “Everyone is trying to compare it with 99 years. That is a technology bubble, in a sense, it is a well-deserved bubble, because the market discovered network effects 20 years in advance, the company may appear out of thin air and have 20 100 million customers. But this is a very, very narrow bubble.”
Klaman asked further if there is anything that is non-bubble and undervalued. “You are a value investor. I am not,” Druckenmiller replied. “I don’t know what value is. I’m sure there is value there, but I can’t see what it is. This is really not my methodology.”
The billionaire chairman of Duquesne Family Office continued: “My North Star is that everything in the world affects some security. I try to imagine the world as it is now, and then try to see if there is any seismic change. It is happening, and the world may look at it in 18 months. If this is the case, which securities will be priced significantly different from now?” He further believes:
I think that many investors are living in the present. This is a long-term disaster. It may work in the short term.
Druck Miller disclose In November last year, he owned Bitcoin and pointed out that this cryptocurrency is an attractive store of value that can beat gold.In June of this year, he shared How he invested millions of dollars Bitcoin After he received a call from billionaire hedge fund manager Paul Tudor Jones.Jones himself stated last month that he Preferred Bitcoin against gold serves as a hedge against inflation.
What do you think of Stan Druckenmiller’s warning? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author bears direct or indirect responsibility for any damage or loss caused or claimed to be caused by the use or reliance on any content, goods or services mentioned in this article.