Legendary investor Stan Druckenmiller has said the stock market is “convinced” that Donald Trump will win the presidential election.
“I would have to assume that Trump is the favorite to win the election,” the billionaire said during an interview with Bloomberg earlier this month.
“It’s an evolving situation, and if you had asked me this 12 days ago, I would have said, ‘I have no idea, it’s still a total disaster and I have no conviction who is going to win the election,'” he continued.
Druckenmiller, a hedge fund manager and founder of Duquesne Family Office, said the market seems “very convinced” that the former president will win in November.
comes in the middle information that some big hedge fund managers, including Dan Loeb, are backing trades that could prove profitable if Trump is elected next month.
“You can see it in bank stocks, you can see it in cryptocurrencies,” Druckenmiller said.
Legendary investor Stan Druckenmiller has said the stock market is “convinced” Donald Trump will win the presidential election.
However, the billionaire did not endorse either Trump or Vice President Kamala Harris and said he probably won’t vote for either candidate.
He says he believes his industrial policies are equally bad for free-market capitalism, and that Harris’ policies are “worse” for regulation and business.
“I don’t judge anyone who wants to vote for Trump, but to me it’s just a red line, so I’ll probably text someone when I get to the polls,” he said.
Druckenmiller’s comments come as major hedge funds are positioning themselves to profit if Donald Trump wins. according to the Wall Street Journal.
Big money managers have sensed a shift in momentum away from Harris and are buying stocks that would benefit from a Republican victory, such as those linked to prisons.
This despite polls still largely indicating the candidates are tied.
For example, GEO Group, a private prison operator, rose 21 percent this October, on track for its best month since 2022, while bitcoin miner Riot Platforms rose 34 percent.
Dan Loeb, a prominent hedge fund manager, believes a Trump victory is increasingly likely.
His $11 billion company, Third Point, is increasing investments in stocks and options that could benefit, while moving away from companies that may not prosper under a Republican administration.
“I would have to guess that Trump is the favorite to win the election,” Druckenmiller said during an interview with Bloomberg earlier this month.
Druckenmiller did not endorse either Trump or Vice President Kamala Harris, however, he said he likely will not vote for either candidate.
It comes as legendary investor Warren Buffett made it known he will not be backing Harris or Trump for president.
A Sage of Omaha memo released Wednesday said it would not take a stance in the election and that any other suggestion would be “fraudulent.”
Meanwhile, Jamie Dimon, CEO of JPMorgan, the largest US bank, has reportedly privately backed Harris, despite remaining silent publicly.