Stanley Druckenmiller: I’ve Had To Revise My Investing Strategy After 35 Years

During his recent fireside chat with Paul Tudor Jones at Robin Hood NYC 2023, Stanley Druckenmiller explains why he had to revise his investing strategy after 35 years. Here’s an excerpt from the chat:

Druckenmiller: It’s a great question. Normally given the economic outlook I have, which is something’s going to break, the anecdotal has turned, oil, interest rates and the dollar up never been good for the economy. I would be long bonds.

That would have been my process the last 35 years.

Because of the rant I went on the first 15 minutes I’m not only not long bonds, I’m short bonds.

But because I’m now worried about the actual economy. Here’s the sequence.

I was short bonds from May until July by themselves. In July I kept that bond short and I added a two year long and more bond shorts.

About two to three weeks ago I started to get really nervous about something break and I don’t want to over intellectualize bonds, but because of everything we talked about, I didn’t want to cover them.

So I bought a massive leverage position in two years. So I’m now long a lot of two years. I already had a steeper run and I’m short 30 years, but I now have an overage in two years. So I’m actually long fixed income for the first time since 2020. But to be clear, I’m short bonds and I’m long the front end.

You can watch the entire discussion here: