The stock market will remain stable for the next 10 years, predicts a billionaire investor

The reversal of globalization, which led to high productivity and disinflation, is a significant change, according to Druckenmiller. In order to promote growth after the 2008 global financial crisis, central banks also adopted generally loose monetary policies; however, they are currently adopting a more restrictive approach.

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In order to control inflation, the Fed raised interest rates four times in 2022 and is expected to do so again. It added another 0.75 basis points to its benchmark interest rate in July. This is the fourth rate hike in 2022 by the Central Bank. Since the late 1980s, there have not been such rapid or significant rate hikes. It follows a similar increase in June.

While calling central banks “reformed smokers,” Druckenmiller said gains from the bullish stock market since 1982 would likely wane. founded, Home Depot was founded, Druckenmiller recalled.

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Due to the war, the pandemic and the reaction of the world, Druckenmiller claimed that it would be harder than ever to predict how the market might develop over the next six to 12 months.

The coronavirus, war and political responses in the United States and around the world, he continued, made this the most difficult environment Druckenmiller had ever had to foresee. Circumstances that had supported bull markets since 1982, especially in the previous 10 years, had come to an end, Druckenmiller observed.

Druckenmiller, in order to further support his position, claimed that his bearish bias needed to be overcome as he had it for 45 years. “I like darkness,” he said.

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