Paul Tudor Jones bullish US stocks view is the legendary hedge funds latest take on where he thinks the US indices are heading.
“I think this year we’re going to continue to have U.S. exceptionalism and U.S. outperformance” Paul Tudor Jones says. “The S&P 500 will outperform its peers, it will outperform emerging markets”.
Paul Tudor Jones’s bullish US stocks view is worth taking note, bearing in mind that the hedge fund legend is famous for making macro hedge fund calls.
“I think this year we’re going to continue to have U.S. exceptionalism and U.S. outperformance”
PAUL TUDOR JONES
His biggest prediction came when he correctly predicted the 1987 stock market crash.
“I think from that, you’ll have to take all the correlated trades. Rates won’t go down, they will probably go back up and I think the dollar stays firm” Tudor Jones said. “I’m very bullish in the U.S. stock market” said Paul Tudor Jones.
Paul Tudor Jones’s bullish US stocks view is so far playing out
The S&P 500 is up 11.02% year to date at the time of writing this piece.
“Last year, we walked into a situation with a lot of euphoria; a huge amount of long-equity positions both in the U.S. and globally” Tudor Jones said. “We took those positions and we washed them into a trillion dollars in corporate buybacks. Fast forward to where we are today, all that leveraged positioning … that’s been washed out” said Paul Tudor Jones.
“I’m very bullish in the U.S. stock market”
PAUL TUDOR JONES
The Federal Reserve’s patience in raising rates gave momentum to Paul Tudor Jones bullish US stocks view
But Paul Tudor Jones’s bullish US stocks view could fade, bearing in mind that the US-China trade war truce recently ended with no deal. So escalation of trade tensions between the two great trading nations could now be deadhead and that is likely to weigh on the market sentiment.
“The next recession is really frightening because we don’t have any stabilizers” – Paul Tudor Jones
Paul Tudor Jones admitted in November 2018 that the downgrading of corporate credit will bring about “scary moments” which will most likely test corporate bond investor’s nervous going forward.
Paul Tudor Jones’s bullish US stocks view also contradicts his previous forecast of a deep recession
“The next recession is really frightening because we don’t have any stabilizers” said Paul Tudor Jones speaking at an event sponsored by Goldman Sac on June 18, 2018.
So when you factor in a US-China trade war which is now on the cards perhaps investors should take Paul Tudor Jones’s bullish US stocks view with a grain of salt.
With the global fundamental trending downwards and monetary easing exhausted where is the upside going to come from?
Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.
Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.
A year later and the activist investor Dan Loeb targets Sony
Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.