Morning Comment: Very Simply, Follow the (Smart) Money

Well, we can add another billionaire investor to the list of those who believe the stock market is going to see another decline. Stan Druckenmiller says the risk/reward for equities is the worst he’s seen in his career. To repeat, “The risk/reward for equities is the worst he’s seen in his career.” Mr. Drunkenmiller’s long-term investment performance is (at the very least) right on par with those of Paul Singer, Carl Icahn, Jeff Gundlach, Warren Buffett and Sam Zell…and all of these people are bearish about the short-to-intermediate-term prospects for the stock market. No matter what they think about the very-long-term prospects for stocks, they’re not buying them in any meaningful way at all right now……..What more does the average investor need to know????

In fact, we believe this evidence is so compelling, were not going to add anything else today. We jotted down several comments about the very-short-term condition of the market, but as thought about it further, we decided to leave it there this morning! (When it comes to politics, “Deep Throat” once said, “Follow the money.”…..However when it comes to the markets, the better saying is, “Follow the smart money.”)

Matthew J. Maley

Managing Director

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

275 Grove St. Suite 2-400

Newton, MA 02466


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on May 13, 2020 — 8:05 AM
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