Billionaire investor Paul Tudor Jones said he believed inflation was the biggest threat to US markets and shared strategies he would use to raise prices.
“We need to keep an eye on what the Fed is doing. If they try to use the numbers from the old book, really slowly and gradually, double each inflation trade, “Jones recommended.
Jones said inflation is here to keep up and the Fed is not coping adequately with rising prices, calling the central bank’s actions “the most inappropriate monetary policy we’ve seen in my life.”
The founder and CIO of Tudor Investment Corporation highlights trades that he believes would perform best in an inflationary environment.
“Double the long positions in commodities, TIPS and AUD / JPY in the FX world,” advises Jones.
Jones also cited instruments he believes investors should stay away from while the Fed acts slowly against rising prices.
“You don’t want to have a fixed income,” Jones said. “You don’t want to hold this at all, because what they’re saying with their actions is that they’ll be slow and late in fighting inflation, and somewhere along the way someone will have to come in and hit the hammer.”
The hedge fund manager reaffirmed its bullish outlook for Bitcoin and cryptocurrencies in general, identifying digital assets as his preferred inflation hedge.
“Bitcoin would be a great hedge. Crypto would be a great hedge, “said Jones. “There is a plan in place for cryptocurrencies and it is obvious that they are winning the race against gold at the moment.” I think that would be a very good hedging of inflation. That would be my favorite hedge over gold right now. “
Junior Trader Nikolay Stoychev