Summary
- Stocks rally for a second day, ending October with a third consecutive month of losses.
- Legendary investor Stanley Druckenmiller revealed he holds a massive long position in two-year Treasuries on the basis the Fed will cut rates next year to battle a recession.
- I see a fall in short-term rates as well, but for different reasons.
- Regardless, short-term Treasuries offer an excellent risk-free real rate of return and investment options moving forward as the outlook changes.