by Michael E. Lewitt
David Stockman’s Contra Corner
Recently, legendary investor and philanthropist Stanley Druckenmiller made news when he said that investors should sell their stocks and buy gold. Lost in that message – with which I wholeheartedly agree – was another important point that Druckenmiller made in looking back at his career.
He noted that when he started Duquesne Capital Management in 1981, the risk-free rate of return was 15%. That was the era when the U.S. was facing run-away inflation, iconic Federal Reserve Chairman Paul Volcker had raised interest rates to the high teens, and Treasury bonds paid very high yields.