Paul Tudor Jones talking on the World Economic Forum in Davos, Switzerland, January 21, 2020.
Adam Galica | CNBC
Billionaire hedge fund supervisor Paul Tudor Jones mentioned Tuesday it’s a extraordinarily powerful time to be an investor in threat property amid escalating geopolitical tensions and dire fiscal position within the U.S.
“It’s a extremely difficult to need to be an fairness investor and U.S. stocks proper now,” Jones mentioned on CNBC’s “Squawk Box.” “You’ve received the geopolitical uncertainty… the United States might be in its weakest fiscal position since actually World War II with debt to GDP at 122%.”
The high-profile investor mentioned the Israel-Hamas war introduced on essentially the most threatening and difficult geopolitical setting, whereas would create a risk-off market setting. Meanwhile, a surge in rates of interest has deteriorated the fiscal well being of the U.S. because the nation continues to tackle extra debt.
“As curiosity prices go up within the United States, you get on this vicious circle, the place increased rates of interest trigger increased funding prices, trigger increased debt issuance, which trigger additional bond liquidation, which trigger increased charges which put us in an untenable fiscal position,” Jones mentioned.
Jones is founder and chief funding officer of Tudor Investment Corp. He shot to fame after he predicted and profited from the 1987 inventory market crash.
He can also be the chairman of nonprofit Just Capital, which ranks public U.S. firms based mostly on social and environmental metrics.
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