From the Financial Times:
...Stanley Druckenmiller, the investor who in 30 years as lieutenant to George Soros and then as head of Duquesne Capital Management never had a money-losing year, said the assumption that Chinese demand for commodities was almost insatiable must change.
Mr Druckenmiller’s investment pitch argued that the recent retracement in commodities markets was no mere cyclical swing. “The commodity supercycle is over. It’s not a correction; it’s the beginning of a trend,” he said, pointing to shifting economic priorities in China’s new leadership.
Metals and mining companies, and indeed some economies, were not ready for the change, he said. “Not only did commodities users not anticipate [the China slowdown], they bet further on it. There’s going to be a huge surge in supply.”
Yet his call to avoid exposure to commodity-dependent economies, namely Brazil, South Africa, and to short the Australian dollar, was not the most provocative pitch.
That title belongs to Jeffrey Gundlach, who displayed a flair for doom-mongering that has helped attract $60bn to his three-year-old asset management firm Doubleline....MUCH MORE
