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🐳 Billionaire's new bet

🐳 Billionaire's new bet

PLUS: bank stocks collapse in unison

Alex M.
May 03, 2023

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GM everyone. This is 2036, the newsletter that makes you smarter on crypto in 3min/day.

Stanley Druckenmiller is a multi-billionaire investor famous for:

Breaking the Bank of England by shorting the British pound in 1992, netting $1 BILLION in one day
Earning 30% annual returns for 30 years straight (the stuff that turns $10,000 into $26 MILLION)

Recently, he made a new bet that everyone’s paying attention.

And no, it’s not what you think.

So what does this billionaire know that you don’t?

Give me 3 min to tell you.

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1/ Bank stocks collapse in unison (and Congresswoman makes $$ trading it)

… yesterday, we talked about Bhutan’s potential to mine bitcoin.

2 hours after our newsletter went out, Bhutan announced a $500M crypto mining fund and admitted they’d be mining bitcoin since it was trading for $5,000:

2/ Bhutan announces $500 million crypto mining fund

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Last week, Stanley Druckenmiller spoke at an investment conference organized by the world’s largest sovereign wealth fund - Norway.

This isn’t obvious to outsiders, but Norwegians are the world's biggest owners of stocks. They own 1.5% OF ALL STOCKS.

That makes every Norwegian a millionaire, thanks to the savings of its government.

No wonder they’re so happy all the time

Unfortunately, the same can’t be said about Americans.

At the conference, Stanley Druckenmiller said the US has had:

Free money for 11 years
A broad asset bubble
Interest rates jacked up 5% in 12 months

And if you hadn’t guessed, that’s no bueno.

He’s concerned that the US Federal Reserve has printed $13 TRILLION in the last decade, and that large world powers are moving away from the dollar for international trade.

So with that in mind, he identified a trade he’s fairly confident in.

Now - Stanley himself says you shouldn’t play when you don’t see a fat pitch.

But this is as fat a pitch as any.

Stanley is short the dollar and long gold.

He thinks the Federal Reserve will be forced to print trillions more to save the economy, which will weaken the dollar.

And a weaker dollar = gold up 📈

Central banks are on his side. Last year, they dumped US treasuries in favor of gold at a bigger scale than at any other time in history.

And who could blame them?

The US has:

… all of which are likely to be mitigated with lower interest rates and more money printing.

This would be good for all assets - including crypto.

Stanley himself has said that in a bull market, he’d rather own bitcoin than gold, and that crypto would play a huge role in the American Renaissance as the US comes out of this mess.

And I’ll pay attention to any man who’s compounded money at 30% per year for 30 years and has this many photos of his kids in his office.