Economics
Druckenmiller Sold Gold on Election Night in Bet on Growth
- Optimistic on Trump, says divisiveness may have reached peak
- He’s also shorting bonds on prospect of higher growth, rates
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Stan Druckenmiller says he sold all his gold on election night and is short bonds globally in a bet on stronger economic growth and rising interest rates.
“All the reasons I owned it for the last couple of years seem to be ending,” he said of gold in an interview on CNBC Thursday. In May, the billionaire said the precious metal was his largest currency allocation and that the bull market in stocks had exhausted itself. The rally in gold, which has jumped about 10 percent over the last two years, is losing steam since Tuesday’s Presidential election. Investor attention is now turning back to the Federal Reserve, with traders boosting bets on an interest-rate increase next month.