Paul Tudor Jones: Markets Are More Unstable Than During Trump’s First Term

Billionaire Investor Paul Tudor Jones Warns of Increased Market Volatility Under Trump’s Second Term

Billionaire hedge fund manager Paul Tudor Jones stated on Monday that financial markets are significantly more volatile as President Donald Trump enters his second term compared to 2017.

“There are so many moving parts and crosscurrents. The only thing I can say is that this is a completely different landscape compared to Trump 1.0,” Jones said on CNBC’s “Squawk Box.”

The widely followed investor pointed out that fixed-income markets, currencies, and equities have undergone substantial changes over the past eight years. He noted that the U.S. Treasury is currently issuing a record volume of debt—more than double the levels seen in 2017. At the same time, foreign investors now hold twice as many U.S. stocks, bonds, and real estate as a percentage of GDP compared to 2017, Jones added.

Regarding the stock market, the founder and chief investment officer of Tudor Investment highlighted that the S&P 500’s average price-to-earnings (P/E) ratio is currently around 25, compared to 19 in January 2017.

“We could see a 30% correction in the stock market and still be only slightly overvalued,” Jones warned. “I think with Trump being Trump, I’m not sure things will go as smoothly as in 1.0 because there’s no room for error.”

Market Reactions to New Tariffs

Markets declined on Monday after Trump imposed tariffs on several key U.S. trading partners over the weekend, fueling concerns that a full-scale trade war could disrupt global supply chains, trigger another wave of inflation, and slow down the economy. However, stocks pared losses after Mexico’s president announced that tariffs against his country would be temporarily suspended.

“He’s my president now, and I pray he makes all the right decisions because we are in an extremely fragile macroeconomic position,” Jones said. “I don’t think we’ve ever had this many interconnected factors that could go wrong. It will take a real virtuoso to manage things in a way that preserves the current value of major asset classes.”

Jones’ Market Influence

Jones rose to prominence after successfully predicting and profiting from the 1987 stock market crash. He is also the chairman of Just Capital, a nonprofit organization that ranks U.S. public companies based on social and environmental metrics.