"I'm lost ... I don't play when I'm lost," says Stan Druckenmiller, explaining to Bloomberg TV why he doesn't have any big bets going right now. He believes the market is topping right now, but his main focus is on who the new Fed chairman will be, and he's willing to wait a few weeks to find out. The takeaway from that comment looks to mean Druckenmiller will be buying on a Yellen appointment, selling on Summers.
As long as the Fed is printing money, he says, there's no chance of a bear market, but "if you tell me QE will be removed in 6-9 months ... that's a big deal." For those who don' think so, he says, look at June - the mere hint of removal caused havoc. What do you think might happen when tapering actually begins (Has the Ted Williams of global macro forgotten markets anticipate?).
On again, off again short bonds for some time now, Druckenmiller admits to missing the big move down in Treasurys this summer after waiting for it for years.
For now, he's long a few Japanese stocks and short the yen.