In his recent interview with the Sohn Conference Foundation, Stanley Druckenmiller recommended investors be open-minded to the possibility of something really bad happening. Here’s an excerpt from the interview:

Druckenmiller: This is my 45th consecutive year as a chief investment officer. And in 45 years I’ve never seen a constellation while I was a practitioner or frankly studied one where there’s no historical analog.

So right now I probably have more humility in terms of my views going forward than I’ve had maybe ever but I would say if I have an objection out there, in 2009 I made a statement inside the firm was, well we won’t have another financial crisis for 30 or 40 years because once you have one of these everyone learns from it and we get disciplined and it takes them that long to screw up again.

The last one we had was obviously ’29. I’m not so sure I buy into all this stuff about bank balance sheets and this and that. What the central banks globally have done the last 10 or 11 years, I’m not predicting this John, but it leaves me open-minded to something really bad.

So that’s the guy on this shoulder we talked about earlier, the other shoulder is saying this is an analysis harder than you’ve ever faced in 45 years so please be open-minded because this is not a story we’ve seen before so the ending is not as predictable as it has been in other parts of your career.

You can watch the entire discussion here:

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