The shocking rally in U.S. stocks has claimed another bear: Stan Druckenmiller.
The legendary investor, who last month warned about owning stocks, said on Monday that he now thinks he was “far too cautious” during current market gains.
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Druckenmiller Says He Missed A Great Opportunity During Rally
“I was up 2% the day of the bottom, and I’ve made all of 3% in the 40% rally,” Druckenmiller said in a CNBC interview. “I missed a great opportunity here. Won’t be the last time.”
The March decline in stocks ended the bull market and the spread of the coronavirus pandemic pummeled the economy and put millions of Americans out of work. While many observers were predicting unprecedented gloom just weeks ago, the S&P 500 Index has defied expectations.
In May, Druckenmiller said the risk-reward calculation for equities was the worst he’s seen in his career, and that the government stimulus programs wouldn’t be enough to overcome real world economic problems.
But as cases of the coronavirus decline in the U.S., many parts of the country are coming out of lockdowns, adding to optimism in the markets. Adding further fuel to the S&P 500 was a surprise positive jobs report on Friday, which sent the benchmark up 2.6%.
“What is clearly happening is the excitement of pre-opening is allowing a lot of these companies that have been casualties of Covid to come back” in part due to intervention by the Federal Reserve and positive news on the prospect of a vaccine that would halt the virus, he said.
Bloomberg News provided this article. For more articles like this please visit bloomberg.com.
Article by Melissa Karsh continues at Advisor Perspectives