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Druckenmiller says to Replace Stocks with Gold

In April 2020, came under new management, articles published before this time, such as the below, may not reflect the views or opinions of the current team.

There are abundant reasons to stay away from the stock market these days. If you don’t have enough time and are not willing to dedicate your focus on charts and business news, stocks may not be the right investment for you.

No one has said that investing in the stock market is easy. You have to be careful, have steel nerves, and know how to analyze the situation properly. There is too much research to be done and plenty of the influential factors will remain in the shadows after all.
Those who do their homework and has some luck, get the money. The others are only feeding the brokers. It is just a business like many others. The high profitability makes stocks something to consider when looking a rags-to-riches investment.

At the same time, getting in Forex and holding U.S. Dollars are popular activities as well. These types of investment will require a significant amount of time too. Also, as stocks, they have a quote of risk implied.

Yes, these words seem like a pessimist speech but they are just exhibiting the reality before talking about what Stanley Druckenmiller thinks about the actual panorama. The veteran billionaire investor took the stage during the Sohn Investment Conference to share a few thoughts.

“The conference wants a specific recommendation from me. I guess ‘Get out of the stock market’ isn’t clear enough”, he said to the public on May 4th. He thinks that the actual FED policies aren’t good enough and the U.S. Dollar could be affected negatively by them in the mid-term.

Also, he expressed being worried about the Chinese economy, which is going slow these days. Before the highly positive forecasts about the Far East productivity, everything is going back to normal.

These economic changes could affect the performance of many companies who are in the stock market. The biggest names could fall in mayhem if the Chinese government makes relevant announcements.

Mr. Druckenmiller, who holds a spectacular record in money management and hedge fund performance, isn’t comfortable with the idea of not investing in gold. He considers that right now holding gold is the best way to protect capital.
While many investors could argument Mr. Druckenmiller’s suggestion by saying that gold doesn’t generate any return, here we are talking about a safe-haven asset that has the chance of creating profit in the upcoming months.

Disappointing Friday and Political Impact

Two days after these declarations, the FED published the jobs report for April, letting down investors. While forecasted numbers were already low, the actual numbers in the report were worst. Only 160,000 jobs were created during the past month, establishing a record low and proving that U.S. economy is slowing down for real.

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