KEY POINTS
  • Stanley Druckenmiller said the market's strong performance over the last three weeks has "humbled" him and that he underestimated the power of the Fed.
  • Druckenmiller said he has returned just 3% during the market's 40% rally since the S&P 500's springtime bottom.
  • Druckenmiller now thinks that Fed stimulus, combined with investor excitement about the gradual reopening of U.S. business, is leading to broad outperformance.

Longtime hedge fund manager Stanley Druckenmiller told CNBC on Monday the market's strong performance over the last three weeks has "humbled" him and that he underestimated the power of the Federal Reserve.

"I had long-term concerns for the last few years that because of easy money, too much debt was being built up in the corporate sector," Druckenmiller said on "Squawk Box." "When Covid hit, I was pretty much of the view that there was a good chance that the credit bubble had finally burst and the unwinding of that leverage would take years."