Stanley Druckenmiller says the stock market is in an ‘absolute raging mania’

Fred Imbert@FOIMBERTKEY POINTS

• “Everybody loves a party … but, inevitably, after a big party there’s a hangover,” billionaire Stanley Druckenmiller told CNBC.
• “Right now, we’re in an absolute raging mania. We’ve got commentators encouraging companies to do stock splits. Companies then go up 50%, 30%, 40% on stock splits. That brings no value, but the stocks go up.”

WATCH NOWVIDEO01:56Stanley Druckenmiller: The stock market is in an ‘absolute raging mania’

The stock market is in a mania fueled by the Federal Reserve and investor speculation that will end badly in coming years, longtime hedge fund manager Stanley Druckenmiller told CNBC on Wednesday. 

“Everybody loves a party … but, inevitably, after a big party there’s a hangover,” the billionaire CEO of the Duquesne Family Office said in a “Squawk Box” interview. “Right now, we’re in an absolute raging mania. We’ve got commentators encouraging companies to do stock splits. Companies then go up 50%, 30%, 40% on stock splits. That brings no value, but the stocks go up.”

Tesla shares rallied 82.5% from Aug. 11 — when the company announced a 5-for-1 stock split — to Aug. 31, when the split took effect. Apple jumped 34.2% between July 30 and Aug. 31 on news of a 4-for-1 stock split. The stock has fallen more than 12% since the split took effect. 

The S&P 500 is up more than 51% after hitting an intraday low on March 23. Last week, the broader-market index hit an all-time high before a rollover in tech shares knocked it back below that level.

“I have no clue where the market is going to go in the near term. I don’t know whether it’s going to go up 10%; I don’t know whether it’s going to go down 10%,” Druckenmiller said. “But I would say the next three to five years are going to be very, very challenging.”……More Here

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