Bullish Druckenmiller Sees Growth Boosting Dollar, Yields to 6%

Bullish Druckenmiller Sees Growth Boosting Dollar, Yields to 6%
2016-11-29 17:41:50.543 GMT

By Katherine Burton, Simone Foxman and Katia Porzecanski
(Bloomberg) — Billionaire Stan Druckenmiller is bullish on
the American economy following the U.S. election, anticipating a
much stronger dollar and higher bond yields.
Druckenmiller, speaking Tuesday at the Robin Hood Investors
Conference in Brooklyn, said the euro could weaken to 82 cents
against the dollar, and yields on the U.S. 10-year Treasury may
rise to 6 percent over the next year or two. He’s also short the
yen and global bonds, according to people who heard him at the
gathering, which was closed to the press.
Since the election of Donald Trump, Druckenmiller has
forecast a stronger dollar and rising global yields. He has
expressed optimism that the Trump administration will follow
through with its promise of tax reform and deregulation to help
the economy grow. A few days after the Nov. 8 vote, he said he
had sold out of his gold position.
The investor is less sanguine about the fate of the euro
zone. At the conference Drunkenmiller said he expects it will
slowly break apart over the next decade, according to the
people.
Druckenmiller, who now manages his own wealth, said his
returns this year were in the low teens. He averaged annual
returns of 30 percent from 1986 through 2010 at his Duquesne
Capital Management.

–With assistance from Joshua Fineman.