Future direction of financial markets

As far as the future direction of the financial markets is concerned, billionaire investor Stanley Druckenmiller is not so sure. After dumping his other investments after Trump’s tweet on May 5, he piled into Treasuries. When he bought them he wasn’t sure if rates were going down but he was sure that they were not going up. He had previously noted that buying two-year Treasury notes (SHY) in late 2000 was one of his best trades ever.

Druckenmiller Suggests These Two Trades to Hedge against Meltdown

Druckenmiller thinks Fed rates are going to zero

As Bloomberg reported, Druckenmiller mentioned that he could see the Fed rates going to zero in the next 18 months if the economy softens further. Since May 5, bond prices have jumped while the yields have slumped. The yield on the ten-year Treasury security (BND) has plummeted ~400 basis points. He said that while Treasuries (TLT) might have become less interesting after their recent rally, they are “the best game in town” if the economy deteriorates. He also likes gold (GLD) in this environment.

Druckenmiller’s gold bet

Druckenmiller dumped his gold (GLD) holdings the night before Trump’s election. However, he could not resist the metal for long and again dipped back into it in December 2016 and January 2017. He had wanted to buy currency, but no country wanted its currency to strengthen, so he bought gold (JNUG) instead, which was attractively priced.

Latest articles

19 Jul

Afya's IPO Sees Strong Listing Gains

WRITTEN BY Mohit Oberoi, CFA

Afya (AFYA) listed on the Nasdaq Global Select Market on July 19. The company priced its IPO at $19 per share.

19 Jul

What to Watch For in Amazon's Q2 Earnings

WRITTEN BY Sanmit Amin

e-Commerce giant Amazon (AMZN) is scheduled to report its second-quarter earnings results after the closing bell on July 25.

19 Jul

Barrick Gold Reaches Deal to Buy Acacia Mining

WRITTEN BY Anuradha Garg

After a long standoff, Barrick Gold (GOLD) and Acacia Mining (ABGLF) have reached an agreement.

19 Jul

Comcast Shares Pop on Goldman's Optimism

WRITTEN BY Ruchi Gupta

Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."

19 Jul

Why Analysts Are Bearish on Netflix Stock

WRITTEN BY Aditya Raghunath

Netflix stock fell over 10.0% on Thursday and is down 0.5% today as well.

On Thursday, pet retailer Chewy (CHWY) reported its first-quarter results after the market closed. The company reported its earnings for the first time.