Billionaire investor Stanley Druckenmiller says he's been 'humbled' by markets after missing out on the historic stock rally
- Stanley Druckenmiller told CNBC on Monday that he'd been "humbled" by markets following stocks' historic 50-day rally.
- "I've been humbled many times in my career, and I'm sure I'll be humbled many times in the future. And the last three weeks certainly fits that category," Druckenmiller said.
- Druckenmiller said last month that the stock market's risk-reward profile was one of the worst he'd ever seen, and he discounted the Federal Reserve's ability to save the economy.
- On Monday, Druckenmiller said he'd underestimated the Fed and was up only 3% after the market's 40% rally.
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The billionaire investor Stanley Druckenmiller told CNBC on Monday that he'd been "humbled" by markets after missing out on stocks' historic 50-day rally.
The stock market has rallied more than 40% off its March 23 low, marking its strongest 50-day rally.
Last month, Druckenmiller said in an interview with the Economic Club of New York that the stock market's risk-reward profile was one of the worst he'd ever seen, and he discounted the Federal Reserve's ability to save the economy.
"I've been humbled many times in my career, and I'm sure I'll be humbled many times in the future," he said on Monday. "And the last three weeks certainly fits that category."
The hedge-fund manager said he was up only 3% relative to the market's 40% rally, essentially missing out on the market run over the past two months.
Druckenmiller said that he'd had long-term concerns over the past few years about a buildup of debt in the corporate sector and that he'd thought the COVID-19 pandemic would be the catalyst for that corporate debt bubble to burst.
But the Fed's unprecedented actions of buying investment-grade and high-yield debt to shore up the credit market went against Druckenmiller's thesis.
"I underestimated how many red lines and how far the Fed would go," Druckenmiller said.
Despite Druckenmiller's bearish views, he still owns some stocks.
"Amazon and Microsoft are my largest holdings, but I have the least growth rating in my portfolio I've had for maybe six or seven years," he said.
But he added: "I don't want your viewers to get too excited on that ... I can change my mind in a week or two."
That comment echoed those of CNBC's Josh Brown, who detailed last month why individual investors shouldn't take investment advice from billionaire hedge-fund managers.