Paul Tudor Jones’s uncharted territory view was put forward in his recent business interview.
Paul Tudor Jones is the founder and chief investment officer of Tudor Investment Corp. He thinks that we are now in “uncharted territory” as the central bank had only eased monetary policy during past economic slowdowns and financial crises.
Paul Tudor Jones was aired one day before the Fed’s rate meeting, which as we forecast, would move to being less hawkish and into a balanced tone as the Q1 US GDP contracted by 1.4%.
“Paul Tudor Jones was aired one day before the Fed’s rate meeting, which as we forecast, would move to being less hawkish and into a balanced tone as the Q1 US GDP contracted by 1.4%”
WEALTH TRAINING COMPANY
Paul Tudor Jones’ uncharted territory view is based on the fact that monetary policy contraction was never implemented during a time when the economy posted a slowdown
The Fed’s tightening in a slowdown is unprecedented, and we believe the policy transition from neutral to easing is within view.
Paul Tudor Jones warned investors to prioritize capital preservation in such a challenging 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,” said Paul Tudor Jones.
“I don’t know if it’s going to be one of those periods where you’re trying to make money,” he added.
Paul Tudor Jones’ uncharted territory view highlights the risk that the Fed’s actions could tip the US economy into recession
“They’ve got inflation, on the one hand, slowing growth on the other, and they’re going to be clashing all the time,” Paul Tudor Jones.
“You can’t think of a worse environment than where we are right now for financial assets,” he added.
“You can’t think of a worse environment than where we are right now for financial assets”
PAUL TUDOR JONES
But if you study the history of central banks, then you’ll realize that central banks will do what they do when faced with an economic calamity; they will continue to increase the money supply.
Voltaire famously said, ‘Fiat currency always eventually returns to its intrinsic value–zero. ‘ It does seem like we are witnessing the final stages of that process unfold now.
Letting M2 loose is the path of least resistance when faced with angry and half-starving mods with pick forks at the gate.
“If you look at the smartest and brightest minds coming out of college today, so many of them are going into cryptocurrencies, the internet 3.0 It is hard not to want to be long because of the intellectual capital going into that space”
– Paul Tudor Jones
Paul Tudor Jones’ uncharted territory view does not support the bullish case for stocks or bonds in these unprecedented times.
So if Paul Tudor Jones does not like bonds, which is a promise to pay a bundle of cash on maturity while earning yields, then the billionaire investor is not bullish on holding cash either.
Here is the zinger to Paul Tudor Jones uncharted territory view.
“If you look at the smartest and brightest minds coming out of college today, so many of them are going into cryptocurrencies, the internet 3.0 It is hard not to want to be long because of the intellectual capital going into that space,” he said.
