Taps Coogan – July 27th, 2021

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Legendary investor Stanley Druckenmiller, arguably the most successful fund manager alive today, who produced average annual returns of 30% from 1986 to 2010 without a single down year, recently spoke with MSNBC to warn that continuing to throw trillion upon trillions of stimulus dollars into a hot economy is not the best idea. He goes as far as to say:

“If I was Darth Vader and I wanted to destroy the US economy, I would do aggressive spending in the middle of an already hot economy, which is exactly what we have.”

Of course, nobody is going to take heed of Mr. Druckenmiller’s warning, but make no mistake, every single major deflation in American history was the result of an asset bubble popping. It’s such a consistent pattern that one might expect that the inflation obsessed Fed would make it a policy to avoid asset bubbles. Apparently not. 

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