Even a legend with Soros money and decades of scars still folded like a cheap suit when the mania music kept playing.

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Druckenmiller begs Soros to dump all tech at 104 times earnings in January 2000.

He steps aside watching his gunslingers print 3 percent a day while Quantum Fund crawls.
Emotional FOMO hits hard, he piles back into $6 billion of tech stocks right at the top.
Loses $3 billion in six weeks and admits he knew better but couldn’t stop himself.

Druckenmiller just confessed he got absolutely wrecked by his own lizard brain at the worst possible second.

Stanley Druckenmiller:

“So, I’ll never forget it. January of 2000 I go into Soros’s office and I say I’m selling all the tech stocks, selling everything. This is crazy…at 104 times earnings. This is nuts.

Just kind of as I explained earlier, we’re going to step aside, wait for the next fat pitch. I didn’t fire the two gunslingers. They didn’t have enough money to really hurt the fund, but they started making 3 percent a day and I’m out. It is driving me nuts.

I mean their little account is like up 50 percent on the year. I think Quantum was up seven. It’s just sitting there.

So like around March I could feel it coming. I just, I had to play. I couldn’t help myself. And three times the same week I pick up a, don’t do it. Don’t do it.

Anyway, I pick up the phone finally. I think I missed the top by an hour. I bought $6 billion worth of tech stocks, and in six weeks I had left Soros and I had lost $3 billion in that one play.

You asked me what I learned. I didn’t learn anything. I already knew that I wasn’t supposed to do that. I was just an emotional basket case and couldn’t help myself. So, maybe I learned not to do it again, but I already knew that.”

The ratio of US leading to coincident economic indicators is now down to 0.84, matching the 2008 Financial Crisis low
byu/RobertBartus inEconomyCharts