Billionaire investor Druckenmiller: Market very confident Trump will win
Billionaire investor Stan Druckenmiller said that the market was very confident that Trump would win the U.S. presidential election. He pointed out that the market's confidence in Trump was reflected in bank stocks and cryptocurrencies. Although he does not support any candidate, he believes that Trump lacks the dignity required of a president. He predicted that if Harris wins, the Democratic Party is unlikely to control Congress, and warned that the stock market may face troubles. He also criticized the Fed's interest rate cut decision and admitted that selling Nvidia was a mistake
Billionaire investor Stan Druckenmiller stated that the market is pricing in a victory for Trump in the upcoming US presidential election.
In a TV interview on Wednesday, Druckenmiller mentioned that in the past 12 days, the market seems "very convinced that Trump will win", "you can see it in bank stocks, and you can see it in cryptocurrencies."
However, he will not vote for Trump nor for Harris. Druckenmiller called Trump a "blowhard" and believes he lacks the necessary gravitas to be president, while he thinks Harris as president would be bad for business. He has not donated to either candidate.
The 71-year-old Druckenmiller managed money for George Soros for over a decade and supported Nikki Haley's primary campaign against Trump. He predicted that even if Harris wins the presidential election, the Democratic Party is "highly unlikely" to gain control of Congress.
He mentioned that if there is a "blue sweep", the stock market may face trouble for three to six months. However, he said that under Trump's presidency, the likelihood of a "red sweep" is higher than a "blue sweep".
Scott Bessent, who also worked at Soros Fund Management, has been advising the Trump campaign on economic issues. He proposed the idea of establishing a shadow chairman for the Federal Reserve, who could potentially challenge the current chairman Powell before his term ends in May 2026.
But Druckenmiller said that a shadow Fed is "a terrible idea and irresponsible".
He criticized the Fed's 50 basis point rate cut in September as a mistake, and his company Duquesne Family Office shorted bonds after the Fed announced the rate cut.
Druckenmiller believes that the market needs to temper its expectations for central bank easing pace and magnitude.
He also mentioned on Wednesday that his decision to sell Nvidia this year was a "big mistake". He said, "I've made a lot of mistakes in my investment career, one of them was selling all of Nvidia between $800 and $950. It tripled in a year, and I thought it was overvalued. Nvidia is a great company, and if the price comes down, we'll get back in. But for now, I'm licking my wounds from a bad sale."