Stanley Druckenmiller says Market losses are not coming to an end just yet.

Druckenmiller, who runs Duquesne Family Office and who managed money for George Soros for more than a decade, speaking at the 2022 Sohn Investment Conference, said, “My best guess is that we’re six months into a bear market. For those tactically trading, it’s possible the first leg of that has ended. But I think it’s highly, highly probable that the bear market has a ways to run.”

Presently the Nasdaq has dropped more than 20% off its previous peak, which is the technical definition of a bear market. The S&P 500 came within points of crossing that threshold, before a rally pulled it back. It has since gained about 3%.

Adding to the forces pulling the market down is the Federal Reserve’s commitment to battling inflation through monetary tightening. Druckenmiller says that will very likely drive the economy into recession sometime in 2023.

A year ago, he was deriding the central bank’s hands-off policy, saying, “… we are in a raging mania in all markets.”

Of that he says, “That period was incredibly costly, because a lot of assets were purchased during that period that a lot of people moving out the risk curve will lose a lot of money on.”

At the same conference, Greenlight Capital’s David Einhorn said, under-investment in things such as cement, housing, mining oil and paper will likely keep prices elevated and cause inflation to persist.

Druckenmiller said for the last six to eight months he bet against fixed income and stocks, avoided currencies, and owned key commodities such as oil, gold, and copper. In the first quarter, Duquesne exited Google parent Alphabet Inc., Airbnb Inc. and Carvana Co., while increasing its position in Chevron Corp.

He is taking a break from bonds based on uncertainty bonds will hold up in a downturn, due to yields being so much lower than inflation.

He said, “While I’m not comfortable owning bonds, I’m much less comfortable being short fixed income to the degree I was three to six months ago. I’ve lived through enough bear markets that if you get aggressive in a bear market on the short side, you can get your head ripped off in rallies.”

However he still says he expects to short stocks again if the right opportunity presents itself, and he also said he expects to bet against the dollar at some point in the next six months.

He said, “If you’re predicting a soft landing, it’s going against decades of history.”

According to the Bloomberg Billionaires Index, Druckenmiller is worth about $10 billion.