Last week here we introduced Stanley Druckenmiller. Forced to clarify his thoughts from a private event that went public, he did so in a terrific Bloomberg interview … this is where it gets interesting.
Druckenmiller beat the drum loudly in the interview for higher rates. We agree!
- Unemployment is back down again ~ 5.5% from over 10%
- Household total wealth is at an all time high, new highs met in 2013 (low rates cannot help anymore)
- Financial Engineering is rampant-Low rates providing this opportunity (Mergers, leverage, buybacks … NOT Capital growth expenditures)
- The longer we wait the greater the effects when rates finally are raised
These are Druckenmiller’s comments, well said!
Have a Great Day … more to come next week!
John A. Kvale CFA, CFP