Policymakers Have No Endgame. Markets Do.

Stanley Druckenmiller may have the best hedge fund record of all time. Not many investors can average around 30% per annum for a couple of decades.

Druckenmiller is pictured above with George Soros his partner in perhaps the most astonishing trade of all time. These two legendary investors issued the order “my size is your size” to sell the British Pound for US dollars in September 1992, even as the Bank Of England was desperately trying to support the outer limit of the British Pound in Europe’s Exchange Rate Mechanism.

I was on the proprietary trading desk at J P Morgan in London at the time, and had a similar position, and was watching the price action closely all day. GBP/USD hardly had an uptick all day.

Druckenmiller and Soros eviscerated the Bank Of England’s policy in its own currency, and soon Europe’s whole Exchange Rate Mechanism collapsed.

Drunkenmiller once again has a huge conviction. Would you like to know what it is and why?


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