Druckenmiller: Earnings yield to bond yield is most-unattractive in 20 years

Stanley Druckenmiller is on CNBC in the meanwhile saying he does not have a powerful opinion on the route of the market however with innovation surging he mentioned it is time to deal with particular person shares.

• The economic system is ‘very fascinating’
• We’re going from probably the most anti-business administration to the alternative
• CEO’s are someplace between ‘relieved and giddy’
• The economic system appears to be like very, very sturdy at the least for the following six months
• I might say the market is ‘sophisticated’ regardless of economic system
• There’s a push of a powerful economic system in opposition to bond yields that makes me not have a powerful opinion available on the market

Extra:

• Says he is nonetheless brief Treasuries. Says it is doubtless ‘seventh inning’ in bond shorts
• Says fiscal state of affairs is ‘horrendous’
• We’re not anticipating decrease inflation
• The US might want to flip to consumption tax (tariffs) or revenue taxes
• Non-public financial savings within the US are additionally far too low
• Thinks 10% vary of tariffs limits retaliation
• Scott Bessent is ‘extraordinarily succesful’ and is in a fantastic place, he understands the fiscal state of affairs
• That mentioned, he is not in cost so I do not understand how it will work out
• Deficit is a big downside, we’re in a large number. Curiosity expense is an elephant

This text was written by Adam Button at www.ubaidahsan.com.



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