This bubble is in everything” –

Billionaire investor Stan Druckenmiller has warned that everything is in a bubble, specifically mentioning cryptocurrency, meme stocks, stocks and bonds. “This bubble is in everything, every asset on the planet,” emphasized Druckenmiller.

Druckenmiller's warning: Every asset is in a bubble

Stan Druckenmiller discussed bubbles and value investing in a conversation with American billionaire and hedge fund manager Seth Klarman at the Boston Investment Conference last week.

Druckenmiller is chairman and CEO of Duquesne Family Office LLC. Previously, he was Managing Director at Soros Fund Management, where he had overall responsibility for funds with peak assets of $22 billion. According to the Forbes billionaires list, his personal net worth is currently $6.8 billion.

Klarman, CEO of hedge fund Baupost Group, reportedly said asked him: "If the bond market is what everyone is talking about and the bond market is in a bubble, then everything is a bubble, is that fair?" Druckenmiller replied:

Yes, crypto, meme stocks, art, wine, stocks… This bubble is in everything, every asset on the planet.

The current bubble is not as narrow as the dot-com bubble, emphasized Druckenmiller. "Everyone tries to compare this to '99. That was a tech bubble and in some ways a well-deserved bubble because the market recognized the network effect 20 years in advance and that companies could come out of nowhere and have 2 billion customers. But it was a very, very narrow bubble."

Klarman further asked if something is not in a bubble and is undervalued. "You're a value investor. I'm not," Druckenmiller replied. "I don't know what value means. I'm sure there is value out there, but I can't see what it is, it's really not my methodology."

The billionaire chairman of the Duquesne Family Office continued: "My North Star is that every event in the world impacts some certainty and I try to imagine the world as it is today and then I try to see if there is some kind of seismic shift and what the world might look like in 18 months. And if it looks like that, what securities would be valued very differently than they are now?" He further said:

I think many investors live in the present, which is a disaster in the long term. It might work in the short term.

Druckenmiller revealed last November, he owned Bitcoin and noted that the cryptocurrency was an attractive store of value that could beat gold. In June of this year he divided how he invested millions BTC after receiving a call from billionaire hedge fund manager Paul Tudor Jones. Jones himself said last month that he preferred Bitcoin to gold as inflation protection.

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