Stanley Druckenmiller’s view on market environment
Billionaire investor Stanley Druckenmiller is the chair and CEO of the Duquesne Family Office, and he was the former deputy of legendary investor George Soros. His view on the market and the US economy after the US election is relatively optimistic.
Druckenmiller helped George Soros in 1992 when he made a profit of $1 billion by playing against the British pound. However, in the current situation, Druckenmiller has a different strategy. After the announcement of the US election outcome, Druckenmiller said that he reduced his position in gold (GLD) (GDX) (RING). He said that his reason for holding gold was ending and that he is optimistic about economic growth.
His view on gold
Investors normally prefer gold during an equity market rout. Gold as a safe-haven asset is important when international turmoil starts. After the subprime crisis, gold (GLD) rose 145% from the lows of September 2008 to its highs in July 2011.
Druckenmiller is optimistic about economic growth. According to him, policy changes under Trump’s presidency could accelerate economic growth in the US (SPY) (IVV) (QQQ). He’s expecting major corporate tax reforms to ultimately promote economic growth.
Stanley Druckenmiller’s change in positions immediately after the US election might have provided a good return.
You may be interested to read, Mario Gabelli on Inflation, Interest Rates, and the Economy.