Paul Tudor Jones says he can't think of a worse financial environment for stocks or bonds right now

Paul Tudor Jones says he can’t think of a worse financial environment for stocks or bonds right now

Billionaire hedge fund supervisor Paul Tudor Jones stated the environment for traders is worse than ever because the Federal Reserve is elevating rates of interest when financial situations have already turn out to be more and more tight.

“You can’t think of a worse environment than where we are right now for financial assets,” Jones stated on CNBC’s “Squawk Box” Tuesday. “Clearly you don’t want to own bonds and stocks.”

The Fed is anticipated to announce a half-percentage level enhance in its benchmark rate of interest on Wednesday, to tamp down surging inflation at a 40-year excessive.

The founder and chief funding officer of Tudor Funding Corp. believes that traders are now in “uncharted territory” because the central financial institution had solely eased financial coverage throughout previous financial slowdowns and financial crises. He stated traders ought to prioritize capital preservation in such a difficult environment for “virtually anything.”

“I think we’re in one of those very difficult periods where simply capital preservation is I think the most important thing we can strive for,” Jones stated. “I don’t know if it’s going to be one of those periods where you’re actually trying to make money.”

Many on Wall Avenue have grown extra involved that the central financial institution may tip the economic system, nonetheless within the center of a pandemic, into recession with aggressive tightening to manage hovering costs.

“They’ve got inflation on the one hand, slowing growth on the other, and they’re going to be clashing all the time,” Jones stated.

With excessive volatility forward, the longtime dealer stated he would think about proudly owning trend-following methods, which regularly use algorithmic fashions to determine value developments in markets.

“If there was a strategy that I would want to employ right now, if someone put a gun to my head, I’d say simple trend-following strategies,” Jones stated. “They are not too popular today… They will probably do very well in the next five to 10 years.”

Jones shot to fame after he predicted and profited from the 1987 inventory market crash.  He’s additionally the chairman of nonprofit Simply Capital, which ranks public U.S. corporations primarily based on social and environmental metrics.

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