Share
13,066 Posts.
lightbulb Created with Sketch. 225
clock Created with Sketch.
21/12/18
11:59
Share
Originally posted by radx
↑
A very good recent interview with famous investor Stan Druckenmiller, worth a watch!
Stan Druckenmiller has averaged returns of around 30% over the last 30 years, something that only a few other investors have matched including Ray Dalio.
Stan Druckenmiller, Ray Dalio and Keith McCullough all let on that they base their investment decisions off models built from the economic indicators..
They've also said that they've made a lot, if not most of their money in 'Bear markets', mainly investing in US Treasury Bonds.
The economic indicators tell them 'before the herd' whether we are likely heading into a downturn, they can also see/gauge whether inflation is going up or down.
All three will be a big buyer of US Treasury Bonds right now.
As long as you time your entries well, they're risk free investments that allow you to sleep comfortably at night, this is if you're under the impression that we're heading into a downturn and inflation is also going down.
There is currently a bit of a pull back happening in Treasuries after the dramatic moves we saw yesterday.
I notice they will sometimes move to an inverse correlation of the US 500 futures, especially when Treasuries are oversold like they were yesterday.
- The Treasury bonds have been a little volatile lately (mainly to the downside) so I've found it's best to average into these positions and also to trade around your core position when it looks oversold, or the market looks like it is.
- IMO if the market was going to bounce/rally it would have by now.
- A bounce will eventually come but it needs a 'reason' to and there's nothing at present to suggest this...
- The bonds are currently very reactive to any US economic indicator release, if they come in below expectations then the bonds move up in price accordingly.
- Every time an economic indicator misses expectations then it just adds another nail into the coffin for the Fed not raising interest rates and/or lowering them in 2019, these indicators are definitely worth watching!
I also recommend reading Ray Dalio's book, Principles.
Any interview with one of the 3 is definitely worth your time also.
Expand
Agree and been posting a few of SD's interviews for that reason. Worth subscribing to Real Vision for USD$180/yr if you like these longer sorts of in-depth interviews, rather than the clickbait headlines you find in mainstream media. The quality of guests is usually very good and spans hardened FA, to professional chartists, short sellers etc.