Legendary investor Stanley Druckenmiller stated Wednesday at CNBC’s Delivering Alpha event that he would be “stunned” if a recession did not occur in 2023, citing the United States’ gloomy economic picture.
A transcript is as follows:
STANLEY DRUCKENMILLER: I don’t know the timing but certainly by the end of ’23. I will not be surprised if it’s not larger than the so called average garden variety. It’s not my forecast, but I don’t rule out something really bad. Why? Because if you look at the liquidity situation has driven this, we’re going to go from all this QE, QT, we’re following an asset bubble. We’ve doing running down on this SPR–the strategic petroleum reserve–it’s now below ’84 levels, even though oil consumption is much higher.
We’ve made a bunch of myopic policies that have delayed the liquidity shrinkage. […] Our central case is a hard landing by the end of ’23, but I don’t know. I could be wrong, I’ve been wrong on a lot of things.