Legendary investor Stanley Druckenmiller told CNBC’s Delivering Alpha event on Wednesday that he would be “astounded” if a recession did not occur in 2023, citing the grim economic picture in the United States.
A transcript is as follows:
STANLEY DRUCKENMILLER: I don’t know when, but definitely by the end of ’23. I wouldn’t be surprised if it isn’t taller than the so-called average garden variety. That’s not my prognosis, but I’m not ruling out anything really bad. Why? Because if you look at the liquidity situation that led to this, we’re going to go from all this QE, QT, we’re following an asset bubble. We are depleting this SPR – the Strategic Petroleum Reserve – it is now below 1984 levels, even though oil consumption is much higher.
We did a bunch of myopic policies that delayed the reduction in liquidity. […] Our central case is a hard landing at the end of 23, but I don’t know. I could be wrong, I was wrong about a lot of things.