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Hedge Fund Mogul Stanley Druckenmiller Warns of ‘Hard Landing’ for US Economy – Bitcoin News

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Billionaire hedge fund manager Stanley Druckenmiller has a dire prediction for the US economy: a recession is looming, and it’s likely to happen next June. Druckenmiller’s forecast comes as US consumer spending continues to decline, largely due to credit card use. Druckenmiller, the veteran investment tycoon, warns that it would be foolish to ignore the possibility of a “really bad” scenario.

Druckenmiller points to falling consumer spending and disruption to the banking industry as indicators of a recession

At the 2023 Sohn Investment Conference in San Francisco, Stanley Druckenmiller sounded the alarm about the US economy. While others may be optimistic about the “soft landing,” the veteran hedge fund manager is preparing for the impact, anticipation “hard landing” instead.

Stanley Druckenmiller, the hedge fund magnate, warns against
image source:There goes the American consumerHighlighting the decline in consumer spending – Zerohedge May 14, 2023.

Druckenmiller, who has enjoyed 30 years of success in the hedge fund industry, cited A sharp decline in consumer spending And the recent turmoil in the banking industry as major factors behind his forecast. Druckenmiller’s warnings about the US economy echo other notable warnings in the financial world.

Stanley Druckenmiller, the hedge fund magnate, warns against
image source:There goes the American consumerHighlighting the decline in consumer spending – Zerohedge May 14, 2023.

Other well-known investors, including Barry Sternlicht, David Rosenberg and Jeffrey Gundlach, have also expressed concerns about the “hard landing” in the US. At the Son conference, Druckenmiller laid out his forecast, citing rising unemployment, a 20% drop in business profits, and increasing bankruptcies as leading indicators of a recession.

However, he was quick to clarify that he did not expect a crisis worse than the 2008 financial meltdown. Druckenmiller said:

I don’t expect anything worse than 2008. It’s naive not to be open about something really bad, really happening.

Druckenmiller remains optimistic about post-recession prospects

While some experts such as Goldman Sachs Global Investment research And Wendy Edelberg from Project Hamilton, they are anticipation A “soft landing” for the US economy, Druckenmiller has a very different view. Druckenmiller is preparing for a recession, but he’s also optimistic about the future.

Stanley Druckenmiller, the hedge fund magnate, warns against
While Druckenmiller expects a “hard landing” regarding the US economy, the investor believes that opportunities will emerge during and after a recession.

In fact, he believes there will be “incredible opportunities” in the coming years, particularly in the field of artificial intelligence (AI). Druckenmiller sees the post-recession landscape as a breeding ground for innovative technologies and cutting-edge solutions that “present themselves.”

Druckenmiller stated:

AI is very real and can have as much impact as the Internet – AI could eventually produce $100 billion (in) businesses.

At the Sohn Investment Conference, Stanley Druckenmiller didn’t mince words when he commented what he thought of the Fed’s current policy. Druckenmiller believes that the US central bank has exhausted its resources fighting inflation and recession. He lamented, “We wasted all our bullets.”

tags in this story

ai, artificial intelligence, central bank, consumer spending, credit card use, federal reserve, federal reserve, financial experts, hard landing, hedge fund manager, looming recession, opportunities, post-recession, recession, Sohn Investment Conference, Stanley Druckenmiller, American Economics

What do you think of Stanley Druckenmiller’s predictions for the US economy? Do you agree with his assessment or do you have a different view? Share your thoughts in the comments section below.

Jimmy Redman

Jamie Redman is the Chief News Officer at Bitcoin.com News and a financial and technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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