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Stanley Druckenmiller: we own copper
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Stanley Druckenmiller: “We own copper. There is no new supply coming over the next 8 years, and we have a big add-on from the data center buildout.”
Copper is up 50% over the past year.
And we haven’t seen the peak shortage.
And we own copper, it's not a genius trade, it's a big consensus trade, there's no supply coming on, a meaningful supply, very tight for the next eight years, and obviously you have a big add-on from AI and data centers.
We're not long copper equities as much as we are, we just keep rolling the front end.
We have some gold, that's mainly a geopolitical trade, it's not so much a monetary trade.
And then because we're long all these risk assets I just mentioned, we're short bonds.
I don't necessarily expect to make money short bonds, but I think we might make a lot from right on the economy and it's a disinflationary growth.
I probably break even, I don't lose anything, but it allows me to hold the other assets I mentioned.
If I'm wrong and the strong growth creates inflation, it wouldn't be that unusual if the Fed were to cut into a booming economy for inflation to take off, particularly what's going on in commodities.
So I'm open-minded to that.
But we create a matrix and the bonds are helpful in both ways.
