The Wall Street Journal (WSJ) reports comments by Stanley Druckenmiller, a big swinger hedge fund manager, as he expresses his view on the Fed’s monetary policy outlook in the coming months.
Key Headlines:
Economically sensitive stocks have been going down since May. They’re predicting we’re in a very, very late cycle”.
Says the Fed should wait and “see what happens.”
Risky to be tightening now.
“The leveraged loan market is two times what it was in 2007″.
Says Fed QE “encouraged more malinvestment…than at any time I can ever remember. We’re in the most economically disruptive period since the 1880s and there’s been no bankruptcies. As quantitative easing turns to quantitative tightening, all these zombies are going to be exposed.”
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