The big news out of the Sohn Conference yesterday was Stan Druckenmiller’s appearance. Some of revelations were new and some not so new but all were unequivocal.
Let’s start with the not so new:
On gold: “Some regard it as a metal, we regard it as a currency and it remains our largest currency allocation.” (viaBloomberg) It’s hard to imagine a more bullish catalyst for gold than negative interest rates but Druck’s bullishness toward the precious metal is not news. In fact, he’s been building his gold position for about a year now. See: Druck Backs Up The Truck And Loads Up On Gold
On corporate debt: “He highlighted that net cash flow has gone negative while net debt is still climbing at an unprecedented rate. He also said that instead of investing in growth, companies are adding the debt for financial engineering like buybacks and M&A.” (via BusinessInsider) Druck warned about the corporate debt bubble, and in greater detail, over a year ago. See: The Greatest Money Manager Alive Attributes The Majority Of His Success To Just This One Thing
Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover many web sites still default model text.