Can't Get Any Worse Than This for Stocks and Bonds Says Billionaire Paul Tudor Jones

May 3, 2022 9:13 AM EDT
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Hedge fund manager Paul Tudor Jones has weighed in on the extremely volatile markets that continue to punish investors with high exposure to stocks and bonds.

He told CNBC that the environment is worse than ever amid maximum hawkishness from the Federal Reserve.

“You can’t think of a worse environment than where we are right now for financial assets. Clearly you don’t want to own bonds and stocks,” he said on CNBC today.

The market is expecting the Fed to deliver its second hike this week, this time by 50 bps. This is the main reason why investors are operating in “uncharted territory,” Jones added.

“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,” Tudor Jones said.

“I don’t know if it’s going to be one of those periods where you’re actually trying to make money.”

Fears over the world economy going into a recession are mounting with Tudor Jones saying the central banks are in a very difficult spot.

“They’ve got inflation on the one hand, slowing growth on the other, and they’re going to be clashing all the time,” Jones said.

When it comes to him giving a piece of advice to investors, the hedge fund manager says the trend-following strategies are likely the safest option.

“If there was a strategy that I would want to employ right now, if someone put a gun to my head, I’d say simple trend-following strategies. They are not too popular today... They will probably do very well in the next five to 10 years,” he concluded.

By Senad Karaahmetovic

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Tudor Investment Corporation, Senad Karaahmetovic