Since we are stuck in a bear market, I keep watching as much finance news as I can. Most asset managers are still saying the same things which is we are in a bear market, but occasionally you come across a fund manager with a bit extra to say.
In a recent interview on YouTube with Kiril Sokoloff on the Sohn Conference Foundation channel, Stanley Druckenmiller said that during his 45-year career, he has never seen conditions as difficult to judge as what we have now. He didn’t say he expect a hard landing necessarily, but he did suggest he was bearish on the future in general, especially with relation to the US national debt problem which if you include social security commitments is at over 200 trillion dollars.
Druckenmiller said that today he has his money on the sidelines and waiting for better buying opportunities. He said if we have a hard landing, there will be much better buying chances and he doesn’t want to miss them. Even though he doesn’t say we will definitely have a hard landing, for him it is worth the risk to keep money out of the market because the buying opportunities will be so delightful if the hard landing does come that overall it makes more sense to him to keep money out of the market for now.