Stanley Druckenmiller says ‘animal spirits’ are back in markets because of Trump with CEOs ‘giddy’

Stanley Druckenmiller says ‘animal spirits’ are back in markets because of Trump with CEOs ‘giddy’


Stanley Druckenmiller says 'animal spirits' are back in markets because of Trump with CEOs 'giddy'

VIDEO2:1402:14
Stanley Druckenmiller says ‘animal spirits’ are back in markets because of Trump with CEOs ‘giddy’
News Videos

Billionaire investor Stanley Druckenmiller believes Donald Trump’s re-election renewed a jolt of speculative enthusiasm in the markets and surging optimism within businesses.

“I’ve been doing this for 49 years, and we’re probably going from the most anti-business administration to the opposite,” Druckenmiller said on CNBC Monday. “We do a lot of talking to CEOs and companies on the ground. And I’d say CEOs are somewhere between relieved and giddy. So we’re a believer in animal spirits.”

While the notable investor, who now runs Duquesne Family Office, is bullish on the economy in the near-term, he remains somewhat cautious on the stock market because of elevated bond yields. He revealed that he is holding onto his short against Treasurys, effectively betting that bond prices will fall and yields will rise.

“In terms of the markets, I would say it’s complicated,” Druckenmiller said. “You’re going to have this push of a strong economy versus bond yields rising in response to that strong economy, and that kind of makes me not have a strong opinion one way or the other.”

The S&P 500 surged nearly 6% in November on Trump’s victory, bringing the benchmark’s 2024 gains to 23.3%. Trump’s promised tax cuts and deregulation have boosted risk assets dramatically, especially bank and energy stocks, as well as bitcoin, which just hit another record high Monday.

Druckenmiller, 71, said he would focus on individual stocks, not worrying about the broader market. The investor noted he’s bullish on companies where artificial intelligence is going to lower their costs and drive productivity. He didn’t reveal which AI stocks he’s betting on after selling out of Nvidia and Microsoft.

‘Risks are overblown’

As for concerns that Trump’s punitive tariffs would spoil the market rally and spike inflation, Druckenmiller believes that the revenue generated by duties could lessen the pressing fiscal problem in the country.

“We have a fiscal problem, we need revenues,” Druckenmiller said. “To me, tariffs are simply a consumption tax that foreigners pay for some of it. Now the risk is retaliation, but as long as we stay in the 10% range, …I think the risks are overblown relative to the rewards, the rewards on high.”

Stanley Druckenmiller: Tariffs are simply a consumption tax that foreigners pay for some of it

VIDEO5:2805:28
Stanley Druckenmiller: Tariffs are simply a consumption tax that foreigners pay for some of it
News Videos

Trump’s trade memorandum to be issued Monday would not impose tariffs yet. His camp has been reportedly discussing a schedule of graduated tariffs increasing by about 2% to 5% a month on trading partners.

Druckenmiller once managed George Soros’ Quantum Fund and shot to fame after helping make a $10 billion bet against the British pound in 1992. He later oversaw $12 billion as president of Duquesne Capital Management before closing his firm in 2010. 



Source

JPMorgan hired NOAA’s chief scientist to advise clients on navigating climate change
Finance

JPMorgan hired NOAA’s chief scientist to advise clients on navigating climate change

Key Points Sarah Kapnick started her career in 2004 as an investment banking analyst, but was struck by how little climate change was being factored into financial decision making. She later became the chief science officer at the National Oceanic and Atmospheric Administration (NOAA) Last year, JPMorgan hired Kapnick back into banking, where she’s advising […]

Read More
Daniel Loeb’s next task as his hedge fund turns 30: Avoiding becoming ‘AI roadkill’
Finance

Daniel Loeb’s next task as his hedge fund turns 30: Avoiding becoming ‘AI roadkill’

Daniel Loeb has found himself a new goal as his hedge fund Third Point entered its milestone 30th year: To be a true winner in the red-hot artificial intelligence boom and not run over by it. “Change is happening at an ever accelerating and increasing rate and it’s just going to require us to continue […]

Read More
Stocks making the biggest moves midday: Costco, Palantir, Gap, Ulta Beauty and more
Finance

Stocks making the biggest moves midday: Costco, Palantir, Gap, Ulta Beauty and more

Check out the companies making headlines in midday trading: Costco — The wholesaler gained more than 3% on fiscal third-quarter results that surpassed analysts’ estimates, while sales jumped 8% from the same period a year ago. Ulta Beauty — Shares of the beauty retailer skyrocketed nearly 13% to hit a 52-week high after the company […]

Read More