One of the most recognizable investors of recent years, was once again a guest on CNBC’s Squawk Box program. On this occasion, he again pointed to cryptocurrencies as the best investment assets, although he did not do so directly.
A worse environment for stocks and bonds is hard to come by
In an interview with CNBC, Paul Tudor Jones drew attention to the situation that currently prevails on the US stock market. In his opinion, it is hard to imagine worse conditions for investments in both stocks and bonds. The reason for the confusion is the American FED, which raises interest rates at a time when the economic situation has become very tense. This in turn has the right to cause high volatility.
He also pointed to the Federal Reserve meeting scheduled for May 4 and the specter of 0.50% interest rate hikes. As it later turned out, these increases were in line with his predictions.
See the CNBC interview here: https://www.youtube.com/watch?v=AtjvYvAivak
Tudor Jones believes that investors are currently in so-called “uncharted territory”. There are, therefore, legitimate fears that the Fed could drive the economy into recession by aggressively tightening monetary policy, manifesting itself in further interest rate hikes to bring soaring prices under control.
As he stated:
“I think we’re in one of those very difficult periods where simply protecting capital is, I think, the most important thing we can pursue. I don’t know if this is going to be one of those periods where you’re actually trying to make money.”
The cryptocurrency solution
In Jones’ statement we come across an interesting statement:
“If there was a strategy I wanted to use right now, if someone put a gun to my head, I would say simple trend following strategies. These are not very popular right now. They will probably do very well over the next five to ten years.”
These words may indicate that cryptocurrencies are a good investment solution. It is worth recalling that Tudor Jones himself has repeatedly said that he has an exposure to them to the extent of a few percent of his portfolio. He has also indicated that bitcoin is a much better investment solution than gold.
If you want to learn more about this topic, take a look at the article titled “Paul Tudor Jones says Bitcoin wins over gold”.