Druckenmiller’s selling activity
Gold and equity market
Earlier, at the 2016 Sohn Investment Conference, Stanley Druckenmiller advised investors to take positions in gold (GDX) and gold miners (GLD) as the global outlook weakened. Gold and other safe-haven assets generally perform well in the midst of international turmoil. Now, Druckenmiller has sold the firm’s position in Barrick Gold, which shows that he might have a strong outlook on the equity market.
However, since January 2017, both the S&P 500 Index (SPX-INDEX) and gold prices have risen. On a year-to-date basis, the S&P 500 Index rose nearly 9.6% as of September 1, 2017. Gold prices (GLD) have risen nearly 14.5% during the same period. Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, recently said in an interview with CNBC that the recent movement of gold and the S&P 500 Index in the same direction could lead to a great disruption in the market.
In the next part of this series, we’ll analyze Stanley Druckenmiller’s stance on the EEM ETF.