Right now we live in a reality wherein actual markets move in large volume and fluctuations on the irascible, syntax-challenged tweets of the actual President of the United States.
The man has attacked individual public companies, shared oddly vague optimistic pablum about macroeconomics and literally started more than one trade war via his personal social media account. It's quite a breathtakingly batshit reality to behold, and traders have made it even more amazing by responding to the tweets and making the whole thing real. Aside from injecting a little fun volatility into an otherwise somnambulant market, the tweets have been almost insignificant in the long-term ---- despite what algorithms seem to think -- and we're all left confounded and exhausted by the spectacle.
But one big name is done pretending to have fun with this nonsense:
Stanley Druckenmiller, a billionaire hedge fund manager with a long track record of beating the market, said Monday that he sold nearly all of his investments and piled into Treasurys following President Donald Trump’s May tweet that escalated the U.S.-China trade dispute.
“When the Trump tweet went out, I went from 93% invested to net flat and bought a bunch of Treasurys,” Druckenmiller said. “Not because I’m trying to make money, I just I don’t want to play in this environment.”
Big Druck is taking his ball and going home. This whole thing has gotten out of hand, and his big bet on China was clearly looking way too shaky. Plus, homeboy is just out here trying to play some golf!
Druckenmiller, who was interviewed by Key Square Capital Management founder Scott Bessent at The Economic Club of New York, said that he’s concerned Trump’s aggressive trade policies may have damaged the U.S. economy and believes the president will be beat by Democrat opponents in 2020.
“I did not expect the lovely tweet that interrupted my golf game on Sunday afternoon about a month ago,” he joked.
And when you mess with the Druck's short game, you get the short horns:
The hedge fund manager said he did not have a strong conviction on which way the financial markets will go from here.
“I actually own a lot of Treasurys and when I bought them I wasn’t sure rates were going to go down, what I was sure was that they weren’t going to go up,” he said.
"Let's see who moves money today," muses the Druck to himself.