Druckenmiller uncomfortable with Trump rhetoric
Billionaire fund manager and FX trader Stanley Druckenmiller got out of it all on May 6 and moved to Treasuries. He took the flight after Trump tweeted about raising tariffs on China.
"When the Trump tweet went out, I went from 93% invested to net flat and bought a bunch of Treasurys," Druckenmiller said at an event in New York. "Not because I'm trying to make money, I just don't want to play in this environment."
It turned out to be the right move with bonds that collect and stocks fall. It is an interesting view of how a billionaire can be so fast and decisive.
"I really own many Treasurys, and when I bought them I wasn't sure the prices were going to go down, I was sure they were not going to go up," he said.
In the future, he still believes that tariffs will be an important part of Trump's toolbox going forward.
Trump "wants to run on tariffs. They are a winning formula in the swing states and the military, sort of verbose press he puts ̵[ads1]1; and braggadocio against China – he doesn't give Xi Jinping a ramp to make a deal, Druckenmiller says.