Stanley Druckenmiller: watch out for the Covid stock rotation
A lot of money has “rotated” into stocks that benefit from working at home. As we return to normal, it will flow back out, says Stanley Druckenmiller, chief executive of the Duquesne Family Office.
The prospect of one or more vaccines for Covid-19 has sent markets soaring. But certain stocks are set to do a lot better than others, as billionaire investor Stanley Druckenmiller points out.
“You’ve had a bunch of equities benefiting greatly from work from home. A lot of money has rotated into them. They are overvalued,” the hedge fund manager tells CNBC. “But then you’ve got a whole other sector of the market that has struggled mightily because of Covid-19. They’re selling at under-value relative to... a three-to-five-year outlook. So the rotation into that would seem entirely rational.”
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Druckenmiller holds both gold and the cryptocurrency bitcoin as hedges against inflation. While he owns a lot more gold than he does bitcoin, he expects the latter to “work better”, notes Billy Bambrough on Forbes. “Bitcoin could be an asset class that has a lot of attraction as a store of value to both millennials and the new West Coast money and, as you know, they got a lot of it.” Druckenmiller adds that the digital currency is becoming more mainstream. “It’s been around for 13 years and with each passing day it picks up more of its stabilisation as a brand.”
-
The most influential people of 2025Here are the most influential people of 2025, from New York's mayor-elect Zohran Mamdani to Japan’s Iron Lady Sanae Takaichi
-
Millions of parents are missing out on up to £720 a year in extra pension cash – are you affected?A mum who narrowly missed out on the pension boost said she “never knew the government rule existed” and wants other parents to use it
-
8 of the best properties for sale with indoor gymsThe best properties for sale with indoor gyms – from a four-storey mews house in London’s Knightsbridge, to a 1920s Arts & Crafts house in Melbury Abbas, Dorset
-
Top stock ideas for 2026 that offer solidity and growthLast year’s stock ideas from MoneyWeek’s columnist and trader, Michael Taylor, produced another strong performance. This year’s stocks look promising too
-
Market predictions for 2026: Will Dubai introduce an income tax?Opinion My 2026 predictions, from a supermarket merger to Dubai introducing an income tax and Britain’s journey back to the 1970s
-
Stock markets have a mountain to climb: opt for resilience, growth and valueOpinion Julian Wheeler, partner and US equity specialist, Shard Capital, highlights three US stocks where he would put his money
-
The steady rise of stablecoinsInnovations in cryptocurrency have created stablecoins, a new form of money. Trump is an enthusiastic supporter, but its benefits are not yet clear
-
SRT Marine Systems: A leader in marine technologySRT Marine Systems is thriving and has a bulging order book, says Dr Michael Tubbs
-
Goodwin: A superlative British manufacturer to buy nowVeteran engineering group Goodwin has created a new profit engine. But following its tremendous run, can investors still afford the shares?
-
A change in leadership: Is US stock market exceptionalism over?US stocks trailed the rest of the world in 2025. Is this a sign that a long-overdue shift is underway?
