Hedge fund legend Paul Tudor Jones is concerned about the current investment situation on the market. In his opinion, stocks are not a good choice in the current market environment.
• Paul Tudor Jones is concerned about geopolitical developments
• US budget situation also a burden
• Stock investments not a good choice
Paul Tudor Jones, the founder and chief investment officer of Tudor Investment, commented on the current market situation on CNBC’s “Squawk Box” and identified geopolitical risks in particular as a negative factor.
Location in the Middle East as a stress factor
The war between Israel and the terrorist organization Hamas has created “the most threatening and challenging geopolitical environment, which creates a significantly risk-averse market environment,” said Tudor Jones in an interview.
He will first wait for a solution to the conflict and assess the possible consequences of the Israel-Hamas conflict before entering risk investments again. He also emphasized that he had not ruled out the possibility of a nuclear war.
US budget situation puts additional strain
At the same time, the investor has identified further headwinds coming from the US budget situation. The United States continues to borrow as interest rates rise. “When interest costs rise in the United States, we get into this vicious cycle where higher interest rates cause higher financing costs, cause more debt issuance, which leads to more bond liquidations, which leads to higher interest rates, which puts us in an unsustainable fiscal position “warned the hedge fund founder.
No to stock investments
Given the fiscal and geopolitical situation, Tudor Jones is critical of equity investments. “From a personal perspective, would I invest in risk assets and stocks now until I see what the solution is with Israel and Iran?” Jones asked. “Israel will react in some way. The question of whether Iran is actually responsible for this is elementary, because here too there is a possibility that something terrible will actually happen,” said the billionaire, with a view to a possible expansion of the crisis Middle East conflict.
Bitcoin and gold preferred
Instead of relying on stock investments or risk investments, Tudor Jones prefers safe havens. This includes gold, traditionally referred to as a crisis currency, but also the cryptographic rock Bitcoin. “I can’t love stocks,” said the expert, “but I love Bitcoin and gold.”
Tudor Jones has been a confirmed Bitcoin bull for years. The billionaire has expressed his preference for the world’s oldest cryptocurrency several times; in 2020 he declared that he had invested around one to two percent of his assets in Bitcoin. Just a year later he had already increased the share to five percent.
In the past, Tudor Jones had also repeatedly brought Bitcoin investments into play as a hedge against inflation.
Editorial team finanzen.net