Close BAC position due to portfolio change.
Hedge-fund legend Stan Druckenmiller suggested Tuesday that the market’s current surge could continue for a while, but is likely to end — and end badly.
Druckenmiller, appearing on the business-news channel CNBC, said in an interview that “the party is going on, and money is being pumped in.”
The Dow closed Monday just a few points below its record closing high of 14,164.53, set in October 2007, and surged past that level and the all-time intraday high of 14,198.10 in the opening moments of Tuesday’s session.
Druckenmiller went on to suggest that stocks could continue to rise in the near term. “The party can continue for awhile,” he allowed. “I don’t know when it’s going to end, but my guess is it’s going to end very badly.”
And he added a word of caution for investors only just being drawn into the markets after years of holding back: “If you’re going to play… for God’s sake play in liquid instruments.”
– Tom Bemis
-Comments: I strongly believe that Stan Druckenmiller is wrong in 6/3/2013's interview. The global recovery is on going and in transition to a growth stage. This comment is from CL. LEE, 6/3/2013, to protect my forecast/view independently from others.