- Stanley Druckenmiller warned crypto, meme stocks, and many other assets are overpriced.
- The billionaire investor said the current bubble is much broader than the dot-com bubble.
- Druckenmiller invests based on how he expects the world to change over the next 18 months.
Billionaire investor Stanley Druckenmiller rang the bubble alarm and reeled off a list of overpriced assets during the Boston Investment Conference on Thursday.
“Crypto, meme stocks, art, wine, equities,” the Duquesne Family Office boss said, according to a transcript tweeted by Cundill Capital, a Twitter user who comments on markets and investing.
“This bubble is in everything. Every asset on the planet,” Druckenmiller continued in a conversation with Seth Klarman, another billionaire investor and the head of Baupost Group. “Made a lot of geniuses out of all of us the last couple of years.”
A conference spokesperson declined to verify the transcript, and Insider wasn’t able to independently verify it. The user behind Cundill Capital told Insider that he transcribed the comments. Druckenmiller and Klarman didn’t respond to requests for comment.
Druckenmiller downplayed comparisons between the current market and the dot-com bubble, noting the excitement in the late 1990s was partly grounded in the rich potential of networking effects. “It was a very narrow bubble,” he noted.
The Duquesne boss also explained how he navigates financial markets. “My North Star is every event in the world affects some security,” he said. Therefore, he tries to envision how the world might look in 18 months, and determine which securities will be priced very differently from today.
Druckenmiller emphasized the risk of focusing too much on the here and now. “A lot of investors live in the present, which is a disaster long term,” he said, while acknowledging the approach “might work short term.”
The investor’s latest comments echo his warning earlier this year that the Federal Reserve’s stimulus efforts were inflating a vast bubble.
“I have no doubt that we are in a raging mania in all assets,” he told CNBC in May. “I also have no doubt that I don’t have a clue when that’s gonna end.”