Screen Shot 2013-09-12 at 11.54.39 AMClick the image above to see the full video interview.

Stan Druckenmiller is one of the most successful hedge fund managers of the past 30+ years. When he talks, I listen. Here are some of the highlights:

  • “When you think back of what Paul Volcker, Alan Greenspan and Ben Bernanke have meant to markets it’s pretty naive to say the next Fed Chairman won’t matter.”
  • “I believe the [stock] market is topping.”
  • “If you tell me QE is going to be removed over 9 or 12 months that’s a big deal because it’s my belief that QE has subsidized all asset prices and when you remove that subsidization the market will go down.”
  • “If you didn’t believe before that the exit was gonna be tough, the mere hint that maybe in 3 months, if the economy’s good, we might go from 85 billion a month to buying 65 billion a month caused that kind of havoc and risk around the world how in the world does anybody think that when the actual exit actually happens prices are not gonna respond? It’s silly.”

The chart below from Jeff Gundlach (via StockTwits) is case in point regarding “quantitative easing” and its effect on stock prices:

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