Druckenmiller worries about the stock market in an ‘absolute raging mania’

CNBC/Fred Imbert

The stock market is in a mania fueled by the Federal Reserve and investor speculation that will end badly in coming years, longtime hedge fund manager Stanley Druckenmiller told CNBC on Wednesday. ‘Everybody loves a party … but, inevitably, after a big party there’s a hangover,’ the billionaire CEO of the Duquesne Family Office said in a “Squawk Box” interview. ‘Right now, we’re in an absolute raging mania. We’ve got commentators encouraging companies to do stock splits. Companies then go up 50%, 30%, 40% on stock splits. That brings no value, but the stocks go up.’”

photo image of a swarm of gnatsUSAGOLD note:  Druckenmiller’s surprising assessment brought to mind a quote from another stock market speculator who warned off market mania a long time ago:

“Have you ever seen in some wood, on a sunny quiet day, a cloud of flying midges — thousands of them — hovering, apparently motionless, in a sunbeam? …Yes? …Well, did you ever see the whole flight — each mite apparently preserving its distance from all others — suddenly move, say three feet, to one side or the other? Well, what made them do that? A breeze? I said a quiet day. But try to recall — did you ever see them move directly back again in the same unison? Well, what made them do that? Great human mass movements are slower of inception but much more effective.” – Bernard Baruch, Wall Street financier (1870-1965)

Repost from 9-9-2020

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