Billionaire investor Paul Tudor Jones, during his recent interview on CNBC's "Squawk Box" this Tuesday, expressed concerns about an impending recession by the first quarter of next year. He attributed this prediction to hawkish policies from the Federal Reserve and rising yields on long-term U.S Treasury bonds.
Jones, the founder of Tudor Investment Corporation, believes that investors will favor gold and Bitcoin during this period. He expects gold to potentially attract $40 billion and foresees an increase in Bitcoin's appeal among risk-averse investors amidst a challenging U.S political environment and global geopolitical tensions. At the time of his interview, Bitcoin was trading at $27,444, marking a 0.3% increase in the past 24 hours.
The investor highlighted signs of an imminent recession including a steep yield curve, a potential 12% stock market drop, and further rate hikes leading to a recession. He also suggested that gold and Bitcoin will constitute a larger share of portfolios due to economic uncertainties.
Jones maintained his ongoing interest in Bitcoin and gold which was initially prompted by anxieties about inflation, geopolitical instability, and imminent rate hikes. His first investment in Bitcoin occurred when it was emerging as an inflation hedge, leading to a significant price rally that attracted numerous investors. Yet with declining inflation and intensifying regulatory attention, Jones later adjusted his stance but still keeps a minor Bitcoin holding.
In addition to his views on Bitcoin and gold, Jones emphasized the difficult conditions for U.S. equity investors. He spotlighted the ballooning U.S. debt-to-GDP ratio and surging interest rates as major challenges for the financial market. To tackle these issues, Jones advocated for fiscal retrenchment.
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