Seeking Alpha

Stan Druckenmiller on investing in government-driven markets devoid of price signals: "The...

Stan Druckenmiller on investing in government-driven markets devoid of price signals: "The importance of my skills is receding. Part of my advantage, is that my strength is economic forecasting, but that only works in free markets, when markets are smarter than people. That’s how I started. Today, all these price signals are compromised and I’m seriously questioning whether I have any competitive advantage left." One wonders where that leaves less talented investors.
Comments (14)
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Really good point. We are all left depending on governments.
    15 Jun 2013, 12:39 AM Reply Like
  • wmateri
    , contributor
    Comments (498) | Send Message
     
    The irony is that the most stridently anti-socialism country in the world (that I'm aware of) is more dependent on government support and intervention than almost any other. Though admittedly it's corporate socialism, not the kind that does the average person much good.
    15 Jun 2013, 09:39 AM Reply Like
  • WhispersofWisdom
    , contributor
    Comments (94) | Send Message
     
    Brilliant words coming from a brilliant man. Thank you for all of your great works. Peace, Lee
    15 Jun 2013, 09:58 AM Reply Like
  • bbro
    , contributor
    Comments (9166) | Send Message
     
    Druckenmiller was a great trader but on this he is full of baloney....wasn't the 90's devoid of price signals??? He is just too tired
    (and worth $2.8 billion)
    15 Jun 2013, 06:43 PM Reply Like
  • Interesting Times
    , contributor
    Comments (9663) | Send Message
     
    He is spot on folks, These markets with the QE'S are tampered with. Whomever thinks otherwise......well.....
    15 Jun 2013, 10:49 PM Reply Like
  • tradewin
    , contributor
    Comments (658) | Send Message
     
    The problem with stimulants is that they are habit forming. Babson said that about the Fed 70 years ago. The Fed and the primary dealers have painted their way into a corner here and it's a guessing game as to what their next move is going to be.
    16 Jun 2013, 12:06 AM Reply Like
  • Interesting Times
    , contributor
    Comments (9663) | Send Message
     
    @TRADE

     

    Exactly. It is now a casino and people have to decide when to get off the gravy train. Japans markets are a perfect example. Has anything except more money printing changed to make the markets jump up as they have ? Fundamentally changed?

     

    Or had their dollar been devalued . That's they key and they are playing a dangerous game of chicken right now..
    16 Jun 2013, 12:57 PM Reply Like
  • Michael Nau
    , contributor
    Comments (971) | Send Message
     
    Maybe his economic models are wrong or are silent about this sort of scenario. In that case, he should find new models. Somebody, somewhere is making money.
    16 Jun 2013, 12:45 AM Reply Like
  • Interesting Times
    , contributor
    Comments (9663) | Send Message
     
    Someone is always making money, but are the rules fair? That is what you need to ask ! Flash crashes some made a ton while some lost a ton. Was that fair?

     

    Follow my blog, which is a top 10 and you can discuss this with a ton of investors . I have learned a lot over the last 5 weeks and over 1 thousand posts!!

     

    http://seekingalpha.co...

     

    TRADEWINS post there and he can attest about all the valuable info delivered daily !
    16 Jun 2013, 01:01 PM Reply Like
  • tradewin
    , contributor
    Comments (658) | Send Message
     
    I've gotten some invaluable info from there. And no. It's not a level playing field. And the exchanges are in business to make money also. But the rules that are in place, protect the average trader more now than no rules back in the day.
    16 Jun 2013, 01:21 PM Reply Like
  • Michael Nau
    , contributor
    Comments (971) | Send Message
     
    Also, imagine what a true free market for GOVERNMENT debt obligations would look like. Its like a zen koan.
    16 Jun 2013, 12:48 AM Reply Like
  • Got That Swing
    , contributor
    Comments (195) | Send Message
     
    Consider the source of that Druckenmiller quote: an interview on ZeroHedge, which if you had listened to them for the past few years you would be up zero percent after their fear-mongering drove you out of the stock market, unless they convinced you to short the stock market or treasuries, in which case you would be bankrupt.
    16 Jun 2013, 01:58 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Short term gains over a few years does not mean anything over an economy that needs 4 to 10 years to turn. Returns have been goosed but UE is still high and very resistant to going down and there are not a lot of answers.
    16 Jun 2013, 01:16 PM Reply Like
  • Interesting Times
    , contributor
    Comments (9663) | Send Message
     
    @NOLE

     

    That is called gambling, not investing. Now those of us who have bought physical metals over the last 12 years make the last 4 look immature to say the least.

     

    Please don't try to convince all of us that you perfectly timed the market when the crash occurred and entered it right after. I know plenty of professionals that got caught invested in that crash, only to be possible to break even right now. Factor in inflation.

     

    I hope you really do believe we have inflation??
    16 Jun 2013, 12:54 PM Reply Like
DJIA (DIA) S&P 500 (SPY)