Business

Paul Tudor Jones states that inflation can be worse than feared and is the greatest threat to markets and society.

Paul Tudor Jones

Michael Neagle | Bloomberg | Getty Images

Billionaire Hedge Fund Manager Paul Tudor Jones We believe inflation will stay here and pose a major threat to US markets and the economy.

“I think the biggest problem facing main street investors is inflation. It’s clear that inflation isn’t temporary,” Jones said on CNBC. “Squawk Box” Wednesday. “It’s certainly probably the only biggest threat to financial markets, and I generally think of it against society.”

Mr Jones said trillions of dollars in fiscal and monetary stimulus have been responsible for longer and hotter inflation. To save the economy from the Covid-19 pandemic, the Federal Reserve has purchased over $ 3 trillion in its open-end quantitative easing program, and the US government has unleashed over $ 5 trillion in fiscal stimulus.

“Inflation can be much worse than what we fear. We have the demand side of the equation … and it’s $ 3.5 trillion bigger than usual … just liquid I’m just sitting in the sediment, “Joan said. “They can be in stock, cryptocurrencies, or in real condition or consumed, so just waiting for them to be used at some point produces a large amount of dry powder. Therefore, inflation will not go away. “

Long-time traders have said price pressures will continue to rise in the coming months.Inflation was carried out at August fresh high for the first time in 30 years In the midst of supply chain turmoil and very strong demand.

The Federal Reserve Board’s recommended inflation index, the Core Consumer Expenditure Price Index, rose 0.3% this month, up 3.6% from a year ago.

“The 60/40 portfolio, the long stock and the long bond portfolio are absolutely dead, so the real question is how to protect yourself against it,” Jones said.

Jones is the founder and chief investment officer of Tudor Investment Corporation. He gained fame after making a profit in anticipation of a stock market crash in 1987. He is also Chairman of JUST Capital, a non-profit organization, ranking US public enterprises based on social and environmental indicators.

This is breaking news. Please check for updates.

Did you enjoy this article?
Exclusive Stock Selection, Investment Ideas, CNBC Global Live Stream
Apply CNBC Pro
Let’s get started with you Free trial now

Paul Tudor Jones states that inflation can be worse than feared and is the greatest threat to markets and society.

Source link Paul Tudor Jones states that inflation can be worse than feared and is the greatest threat to markets and society.

Back to top button