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

cnbc.com:

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,» Druckenmillar 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.

As for concerns that Trump's punitive tariffs would spoil