billionaire investor Stanley Druckenmiller The re-election of Donald Trump is believed to have reignited speculative enthusiasm in markets and heightened optimism within companies.
“I’ve been doing this for 49 years and we’re probably going in the opposite direction from the most anti-corporate government,” Druckenmiller told CNBC on Monday. “We’re talking a lot with local CEOs and companies. I would say the mood among CEOs is somewhere between relief and giddy. So we are believers in animal spirits.”
While the prominent investor, who now runs the Duquesne Family Office, is bullish on the near-term economy, he remains cautious on stocks as bond yields rise. He revealed that he is holding a short position on U.S. Treasuries, effectively betting that bond prices will fall and yields will rise.
“As far as the market is concerned, I think it’s complicated,” Druckenmiller said. “A strong economy will push bond yields higher, and that leaves me with no strong view on one aspect.”
S&P 500 Index The index surged nearly 6% in November after Trump’s victory, bringing the benchmark’s 2024 gain to 23.3%. Trump’s promised tax cuts and deregulation have given a big boost to risk assets, especially bank stocks and energy stocks, as well as Bitcoin, which just hit a record high on Monday.
Druckenmiller, 71, said he will focus on individual stocks rather than worry about the broader market. The investor noted that he is bullish on companies where artificial intelligence will reduce costs and increase productivity. He did not reveal which artificial intelligence stocks he was betting on after selling off Nvidia and Microsoft.
‘Risks are exaggerated’
As for concerns that Trump’s punitive tariffs will derail market gains and fuel inflation, Druckenmiller believes the revenue generated by the tariffs could alleviate the country’s pressing fiscal problems.
“We have a fiscal problem and we need revenue,” Druckenmiller said. “To me, tariffs are just part of the excise tax paid by foreigners. The risk now is retaliation, but as long as we stay within the 10% range, … I think the risk is overstated relative to the reward, which is high.
Trump’s trade memo To be released There will be no tariffs imposed on Monday. His camp has reportedly been discussing a timetable for incremental tariff increases of about 2% to 5% per month on trading partners.
Druckenmiller once managed George Soros’s Quantum Fund and rose to fame after participating in a $10 billion bet against the pound in 1992. , and closed his company in 2010.
