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Highlights From Stanley Druckenmiller’s CNBC Interview: Coronavirus ‘Casualties,’ Why He Was ‘Far Too Cautious’

June 8, 2020
Legendary investor Stanley Druckenmiller was a guest on CNBC's "Squawk Box" Monday to share his thoughts on the market's recovery and what's next for stocks.Growth Vs. Value Stocks: The stock market universe includes a "very limited number" of large-cap companies that benefit from the COVID-19 pandemic, and "hundreds of companies" that are hurt by COVID-19, Druckenmiller said. That's why the first 35% of the stock market rally was led by the growth stocks, and now it is led by value stocks, he said. Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: MSFT) rank as Druckenmiller's top holdings, while his exposure to growth stock is the smallest it has been in six or seven years, he told CNBC. "I could change my mind in a week or two, this is very binary on how this comes out on the health front," he said.But the investor said he acknowledges being "far too cautious," as he is up just 3% versus the market's 40% rally from its lows.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Companies Making A Comeback: Many "casualties" of the pandemic are now given an opportunity to "come back -- and come back in force" thanks to the support from the Federal Reserve and encouraging headlines regarding a vaccine, Druckenmiller said. Druckenmiller On Staying Flexible: Druckenmiller said he remains flexible in how he invests because of the unknown trajectory ahead.If a vaccine is introduced to the market in the coming few months, it will introduce "one distinct outcome," he said. Failure to launch a vaccine for one or two years will generate another "very distinct outcome."Similarly, a successful introduction of new stimulus measures in July will generate "one distinct outcome" while failure to do so would result in liquidity "falling off a cliff," Druckenmiller said. Related Links:Oil Analyst Expects Deeper Deficit In Q3, Says Demand Will Not Fully Recover Until 2022Post-Pandemic Cannabis: Are Amazon, Uber And Other Mainstream Delivery Services The Future?See more from Benzinga * Ex-Whole Foods Exec Says Grocery Stores Need To Prepare For Next Disruption * Pro Investor Says Market Isn't Pricing In China Risks * Making Sense Of Why Consumers Are Switching Their Grocery Store Habits(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Legendary investor Stanley Druckenmiller was a guest on CNBC’s "Squawk Box" Monday&nbsp;to share his thoughts on the market’s recovery and what’s next for stocks.” data-reactid=”19″>Legendary investor Stanley Druckenmiller was a guest on CNBC’s “Squawk Box” Monday to share his thoughts on the market’s recovery and what’s next for stocks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth Vs. Value Stocks: The stock market universe includes a "very limited number" of&nbsp;large-cap companies that benefit from the COVID-19 pandemic, and "hundreds of companies" that are hurt by COVID-19, Druckenmiller said. That’s why the first 35% of the stock market rally was led by the growth stocks, and now it is led by value stocks, he said.&nbsp;” data-reactid=”20″>Growth Vs. Value Stocks: The stock market universe includes a “very limited number” of large-cap companies that benefit from the COVID-19 pandemic, and “hundreds of companies” that are hurt by COVID-19, Druckenmiller said. That’s why the first 35% of the stock market rally was led by the growth stocks, and now it is led by value stocks, he said. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: MSFT) rank as Druckenmiller’s top holdings, while his exposure to growth stock is the smallest it has been in six or seven years, he told CNBC.&nbsp;” data-reactid=”21″>Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: MSFT) rank as Druckenmiller’s top holdings, while his exposure to growth stock is the smallest it has been in six or seven years, he told CNBC. 

“I could change my mind in a week or two, this is very binary on how this comes out on the health front,” he said.

But the investor said he acknowledges being “far too cautious,” as he is up just 3% versus the market’s 40% rally from its lows.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Benzinga is covering every angle of how the coronavirus affects the financial world.&nbsp;For daily updates,&nbsp;sign up for our coronavirus newsletter.” data-reactid=”24″>Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Companies Making A Comeback: Many "casualties" of the pandemic are now given an opportunity to "come back — and come back in force" thanks to the support from the Federal Reserve and encouraging headlines regarding a vaccine, Druckenmiller said.&nbsp;” data-reactid=”25″>Companies Making A Comeback: Many “casualties” of the pandemic are now given an opportunity to “come back — and come back in force” thanks to the support from the Federal Reserve and encouraging headlines regarding a vaccine, Druckenmiller said. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Druckenmiller On Staying Flexible: Druckenmiller said he remains flexible in how he invests because of the unknown trajectory ahead.” data-reactid=”26″>Druckenmiller On Staying Flexible: Druckenmiller said he remains flexible in how he invests because of the unknown trajectory ahead.

If a vaccine is introduced to the market in the coming few months, it will introduce “one distinct outcome,” he said. Failure to launch a vaccine for one or two years will generate another “very distinct outcome.”

Similarly, a successful introduction of new stimulus measures in July will generate “one distinct outcome” while failure to do so would result in liquidity “falling off a cliff,” Druckenmiller said. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related Links:” data-reactid=”29″>Related Links:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Oil Analyst Expects Deeper Deficit In Q3, Says Demand Will Not Fully Recover Until 2022” data-reactid=”30″>Oil Analyst Expects Deeper Deficit In Q3, Says Demand Will Not Fully Recover Until 2022

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Post-Pandemic Cannabis: Are Amazon, Uber And Other Mainstream Delivery Services The Future?” data-reactid=”31″>Post-Pandemic Cannabis: Are Amazon, Uber And Other Mainstream Delivery Services The Future?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”32″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”37″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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