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Oct. 31, 2020, 11:23 a.m. EDT

This billionaire protégé of George Soros has returned 30% a year for decades — here’s his gloomy take on what’s next in the stock market

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Shawn Langlois

That’s billionaire investor Stanley Druckenmiller talking about how a Democratic sweep of the White House and Congress in the upcoming elections could prove to be a headwind for the stock market for years to come. His comments, cited by Bloomberg News, were made on Tuesday at the virtual Robin Hood Investors Conference .

One way Druckenmiller, with a net worth of $5.8 billion, is reportedly playing the prospect of higher taxes and inflation is that he’s short the U.S. dollar /zigman2/quotes/210598269/delayed DXY -0.27% , sources at the conference told Bloomberg. He predicted that, in four years, inflation will top 4%, gold prices /zigman2/quotes/201432642/composite GOLD -4.28% and bond yields will be higher, and the unemployment rate will be about 7%.

He’s not completely bearish on equities, however, saying that beaten-down stocks in this pandemic, such as airlines and cruises, could be profitable investments, particularly if a successful vaccine and another fiscal stimulus boost arrives. The technology high-fliers that have been leading this market, in turn, could see some selling, after their strong run, he warned.

Druckenmiller, who once served as chief strategist for George Soros, is one of the world’s top money managers, boasting returns of about 30% a year over the past three decades, Bloomberg reported.

Meanwhile, stocks got off to a brutal start in Wednesday’s session, with the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.12% down almost 700 points. The tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.22% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.56% were also firmly lower.

/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
92.26
-0.25 -0.27%
Volume: 0.00
Nov. 24, 2020 6:49a
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/zigman2/quotes/201432642/composite
US : U.S.: NYSE
$ 23.24
-1.04 -4.28%
Volume: 36.60M
Nov. 23, 2020 7:00p
P/E Ratio
13.66
Dividend Yield
1.33%
Market Cap
$43.21 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
29,591.27
+327.79 +1.12%
Volume: 389.02M
Nov. 23, 2020 5:02p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,880.63
+25.66 +0.22%
Volume: 5.03M
Nov. 23, 2020 5:16p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,577.59
+20.05 +0.56%
Volume: 2.51B
Nov. 23, 2020 5:02p
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