
Billionaire investor Stanley Druckenmiller believes Donald Trump’s re-election has ignited a wave of speculative enthusiasm in the markets and increased optimism within the business community.
“I’ve been doing this for 49 years, and we’re probably going from the most anti-business administration to the opposite,” Druckenmiller told CNBC on Monday. “We talk a lot to CEOs and companies on the ground. And I would say CEOs are somewhere between relieved and giddy. So we believe in animal spirits.”
While the notable investor, who now runs Duquesne Family Office, is optimistic about the economy in the short term, he remains somewhat cautious on the stock market due to high bond yields. He revealed that he is sticking to his short position on government bonds, essentially betting that bond prices will fall and interest rates will rise.
“As far as markets go, I would say it’s complicated,” Druckenmiller said. “You’re going to get a boost from a strong economy versus rising bond yields in response to that strong economy, and that keeps me from having a strong opinion one way or the other.”
The S&P500 rose 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 dramatically increased risk assets, especially banking and energy stocks, as well as bitcoin, which hit another record high on Monday.
Druckenmiller, 71, said he would focus on individual stocks without worrying about the broader market. The investor noted that he is optimistic about companies where artificial intelligence will reduce their costs and boost productivity. He hasn’t revealed which AI stocks he’s betting on after selling out Nvidia and Microsoft.
‘Risks are exaggerated’
As for concerns that Trump’s punitive tariffs would spoil market recovery and fuel inflation, Druckenmiller believes revenue from the tariffs could ease the country’s pressing budget problem.
“We have a fiscal problem, we need revenue,” Druckenmiller said. “To me, tariffs are simply a consumption tax that foreigners pay for part of it. Now the risk is retaliation, but as long as we stay within the 10% range… I think the risks are exaggerated relative to the rewards. on high.”

Trump’s trade memorandum to be issued on Monday would not yet impose tariffs. His camp has reportedly discussed a schedule of gradual tariffs rising by about 2% to 5% per month on trading partners.
Druckenmiller once managed George Soros’ Quantum Fund and rose 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.