Add news
News Every Day |

Why a top hedge fund investor says markets under Trump could be more complicated than traders are hoping

  • Stanley Druckenmiller says "animal spirits" have been unleashed as Trump takes office.
  • Business leaders have shown optimism for Trump's pro-business policies.
  • But if the economy sees accelerated growth, it could lift bond yields and hurt stocks.

Top investor Stanley Druckenmiller said "animal spirits" have been unleashed by President Donald Trump, but he doesn't expect easy stock market gains going forward.

Talking to CNBC on Monday, Druckenmiller, who runs a $3 billion family office, said business leaders are thrilled about the Trump administration's rise to power.

"We do a lot of talking to CEOs and companies on the ground, and I'd say CEOs are somewhere between relieved and giddy," Druckenmiller said. "So we're a believer in animal spirits."

Druckenmiller said that in his 49 years of business, he's never before seen Washington D.C. switch from "the most anti-business administration," referring to the Biden administration, "to the opposite."

Top technology CEOs like Mark Zuckerberg of Meta Platforms and Elon Musk of Tesla are among the business luminaries telegraphing extreme optimism for the Trump 2.0 era.

That giddiness has also been seen in surveys of small business owners.

The Small Business Optimism Index from the NFIB Research Foundation said its December 2024 survey saw optimism among small businesses surge to a six-year high.

"Small business owners feel more certain and hopeful about the economic agenda of the new administration," Bill Dunkelberg, chief economist at NFIB said of the December survey.

"Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year," he added.

While all of that business-related optimism sounds great for the stock market, Druckenmiller isn't so sure that investors can count on easy returns in the Trump years.

That's because if government policy drives an acceleration in economic growth, it could push bond yields even higher, keeping a lid on stock prices.

The rise in bond yields since the Fed started cutting interest rates in September led to a six-week pullback in the stock market starting in early December.

"In terms of the markets, I would say it's complicated," Druckenmiller said, highlighting that stock valuations relative to bonds look the most unattractive in 20 years.

"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," he added, marking a departure from the bullishness that's pervaded the stock market since Trump won in November.

Druckenmiller said he would remain a stock picker during the Trump administration, focusing on individual stocks more than the broader market.

AI remains a favorite area for Druckenmiller, who said that he's bullish on companies where the adoption of the technology could help drive efficiency gains and boost profits.

Finally, on the topic of potential tariffs from the Trump administration, Druckenmiller said he isn't too concerned as long as they are reasonable.

"To me, tariffs are simply a consumption tax that foreigners pay for some of it," Druckenmiller said, adding that retaliation from other countries is a risk. But if the US stays in the 10% range on tariffs, he said "the risks are overblown relative to the rewards."

Read the original article on Business Insider
Москва

Самозанятые Москвы заработали 1,6 трлн рублей с 2019 года

Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine

T-Mobile closes Lumos deal after dropping DEI

Hyundai’s Insteroid is an EV one-off for gamers

Tesla shares sink as deliveries miss forecasts by 'wide margin': report

Here’s more of what you’ll see through Meta’s $1,000 smart glasses

Ria.city
Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "3 апреля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...






Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Ревматолог: "3 апреля 2024 в г.Колумбус запущена квота"

Каждый человек с больными суставами имеет право получить...


Реклама
  • ИП Попов А.П.
  • ИНН: 602715631406
Осторожно, 1 стакан сжигает 3 кг жира! Запишите рецепт...

Вот это точно убьет лишний вес! -17кг за 5 дней! Перед сном съешьте...

Read also

Save up to 90% on flights with this $10 membership

India approves bill overhauling Muslim land ownership

Travellers race to buy ‘game-changer’ flight essential slashed from £13 to £9

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Here’s more of what you’ll see through Meta’s $1,000 smart glasses

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Here’s more of what you’ll see through Meta’s $1,000 smart glasses



Sports today


Новости тенниса
WTA

Блинкова не смогла выйти во второй круг турнира WTA в Чарльстоне



Спорт в России и мире
Москва

Ансамбль из Петрозаводска завоевал Гран-при международного конкурса



All sports news today





Sports in Russia today

Москва

Росгвардейцы обеспечили безопасность матча ВХЛ в Челябинске


Новости России

Game News

It's actually happening, everybody stay calm: Silksong properly confirmed for a 2025 release date at the Nintendo Direct with a whole 3 seconds of footage


Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this

Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this

Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine

Russian.city

Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine



Губернаторы России
Елена Волкова

Александр Буйнов приглашает на свой 75-летний юбилей


В круиз из Москвы на майские праздники еще можно отправиться за 60 тыс. руб. на двоих

Странная смерть бизнесмена в Москве: Записка рядом с телом добавила вопросов

Конфликт на станции "Арбатская": женщине грозит до 8 лет за нападение

Россия усиливает поддержку Сахеля: обучение армии и помощь в энергетике


Linkin Park регистрирует товарный знак в России для музыки и моды

Без дома и еды. У разбившейся на парковке педагога Гнесинки остался кот

Карди Би обвинила отца своих детей в покушении на убийство

Концерт музыки Антонио Вивальди в исполнении ансамбля старинной музыки в Эрмитаже


WTA сменила флаг теннисистки Дарьи Касаткиной на австралийский

Блинкова не смогла выйти во второй круг турнира WTA в Чарльстоне

Анисимова победила Кудерметову в матче второго круга турнира в Чарльстоне

12-е место в мировом рейтинге WTA, нелюбовь к России и нетрадиционная ориентация Касаткиной


Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this


«Ассоциация Блогеров и Агентств» и «Рейтинг Рунета» выпускают первый в России рейтинг агентств с экспертизой в инфлюенс-маркетинге

Александр Буйнов приглашает на свой 75-летний юбилей

Контроллер внутри стены: новый смарт-дюбель fischer мониторит здоровье дома

Рейтинг пяти лучших маркетинговых агентств: VICTORY GROUP занял первое место


Лукашенко: для Минска и Москвы важно сохранить историческую память о ВОВ

В аэропорту Пулково отменены 17 рейсов

На сцене Театра Эстрады пройдёт Музыкальный фестиваль «Ровесники Победы»

Кокорин получил более 1,6 млн рублей штрафов за нарушения ПДД в Москве — источник


Специалист Лейбман: новый вычет с расходов на свадьбу не увеличит их число

Путешествия по России стали больше интересовать россиян

Офицер подмосковного главка Росгвардии рассказал о работе подразделений территориального органа в эфире телеканала «360»

Спасти и сохранить. Как правильно поливать сад в весенние заморозки


Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine


Путин в России и мире
Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine



Реклама
Top 6 nutrition questions men should ask themselves after 40

To maintain health and remain full of energy, men will be helped by this



Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine



Реклама
The most beautiful beach towns with cheap living

A huge number of people around the world dream of one day breaking out of the daily routine

Персональные новости Russian.city
Певица

Певицу Ларису Долину заметили в ресторане премиум-класса Новосибирска



News Every Day

T-Mobile closes Lumos deal after dropping DEI




Friends of Today24

Музыкальные новости

Персональные новости