Druckenmiller Sees Blue Wave as Long-Term Drag on Stocks
- Billionaire investor says inflation will top 4% in four years
- He predicts a short-term boost for beaten-down travel stocks
Druckenmiller said beaten-down companies in the travel industry, including airlines and cruise lines, will be bought up by retail investors in the first quarter, while technology stocks pare some of their recent gains.
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A sweep by Democrats in next week’s U.S. election and the specter of higher taxes and inflation will weigh on equities in coming years, said billionaire investor Stan Druckenmiller.
“We have borrowed so much that I’m skeptical that three to five years out that equities will give us any kind of return,” Druckenmiller said Tuesday at the Robin Hood Investors Conference, held virtually. Some stocks will perform better in the short term if there’s effective Covid-19 vaccine and massive fiscal stimulus, he said.