Paul Tudor Jones rejects transitory inflation view
Paul Tudor Jones is a billionaire investor and founder of Tudor Investment Company and in his latest interview, he made no bones about making his position clear on the Fed’s narrative of transitory inflation.
“The idea that inflation is transitory, to me … that one just doesn’t work the way I see the world” said Paul Tudor Jones
“The idea that inflation is transitory, to me … that one just doesn’t work the way I see the world”
PAUL TUDOR JONES
Paul Tudor Jones rejects the transitory inflation view along with a string of other top investors including Jeff Gundlach who is also skeptical of the Fed’s inflation narrative
At this point, whenever the Fed does decide to finally taper its stimulus measures, markets are poised to go “bat sh*t crazy”. That’s why this week’s Fed meeting is so important said Paul Tudor Jones.
We are also skeptical of the transitory inflation view believing current inflation to be due to ongoing currency debasement as a result of unprecedented monetary easing. How long can the Fed keep creating 120B USD to finance a public debt which has skyrocketed to over 28T USD without unintended consequence of monetary inflation?
Think about it. We could be just at the early stage of universal basic income.
If Paul Tudor Jones rejects the transitory inflation view, how is the billionaire investor protecting his wealth?
“If they treat these numbers – which were material events, that were very material – with nonchalance, I think that’s a green light on the inflation trade” Jones said in an interview on “Squawk Box”.
“I’d probably buy commodities, buy crypto, buy gold”.
“I’d probably buy commodities, buy crypto, buy gold”
PAUL TUDOR JONES
Of course, the Fed can’t keep its accommodative measures forever. Paul Tudor Jones said he’s grateful he’s not a pension fund manager because right now between bonds and stocks “they are so overvalued; they are at 100-year highs.”I would have as many inflation hedges on as I possibly could”
“It is times like this where the oldest safe-haven asset gold shines its brightest” – Wealth Training Company
Paul Tudor Jones said putting together a portfolio is no easy feat
As of now, he said he’s keeping 5% of his assets in bitcoin, 5% in gold, 5% in commodities, 5% in cash, and, as for the rest, who knows?
So as Paul Tudor Jones rejects the transitory inflation view along with a string of other top investors, we could be entering the most precarious period of the great unknown for markets. The Fed has got no wriggle room to tackle inflation brought on by its very own policy of massive money printing.
So, the greatest monetary easing policy in the history of finance has reached a crossroad, to continue with the policy trajectory of massive easing and pretend that monetary inflation is transitory, that it will go away, or tackle it.
But when the previous Fed chair Yellen attempted to normalize with a three-dot plot increases in rates back in December 2015, the stock market had its worst month on record.
It is times like this where the oldest safe-haven asset gold shines its brightest.