by Jeff Berwick, The Dollar Vigilante:
Several months ago we were following closely as billionaire after billionaire warned of financial calamity to come.
Whether they were warning of a downturn, debt jubilee, or taking large positions in precious metals stocks, guys like Stanley Druckenmiller, Crispin Odey, Paul Singer and even the trillionaire himself, Jacob Rothschild, were outspoken in their stark view of the markets.
Now, we have Stanley Druckenmiller again who sold off his entire gold position the night of Trump’s victory, just buy back the same position!
Initially, he thought Killary would end up winning, but according to one interview, after Trump got elected, he thought the Donald would be in favor of lowering corporate tax rates and cutting back regulations. He viewed this as positive for both equities and the dollar and it is the reason he sold his position in the yellow metal.
The fact that he has gotten back into the same trade now shows that the billionaire may be dissatisfied with the way Trump’s policies are moving.
Druckenmiller, who manages his own personal $4.7 billion fortune, isn’t alone. Although his net worth is less than some of his money managing counterparts, Larry Fink the CEO of BlackRock also just turned unexpectedly bearish. BlackRock is the world’s largest asset manager, with control of over $5.1 trillion in assets.
Its CEO was just quoted by Reuters as saying, “I see a lot of dark shadows.The markets are probably ahead of themselves.” Fink added that “disruptions to trade are a possibility” and that “we’re living in a bipolar world right now.”
He also said that he expects to see the Federal Reserve raise rates this coming June and perhaps once again before the year is over.
If markets are going to react anything like they did the last time the Fed raised rates when the US market subsequently had the worst January in history, we should certainly be taking note.
Lately, gold prices have significantly rebounded and hit three month highs.
Bitcoin too has jumped back above $1,000 to hit a one month high and is within striking distance of its 2017 high.
Gold and bitcoin are typically used as a safe haven to hedge against a falling dollar or inflationary scenario. Movements to the upside are a good indication that it is time to either add to your position or start a new one if you haven’t already.
With the uncertainty about stocks you will want to get the most updated information on how to protect yourself from a potential downturn through investments in other cryptocurrencies and specific stock picks.