Billionaire hedge fund manager Paul Tudor Jones, a prominent Wall Street figure who called the stock market crash in 1987, told CNBC’s “Squawk Box” Monday if the Fed treats higher prices with “nonchalance,” it would be a “green light to bet heavily on every inflation trade.” To see the full interview with Jones sign up for a free trial to CNBC Pro:
Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday he’s paying close attention to this week’s Federal Reserve policy meeting in light of recent economic data showing higher consumer prices.
“If they treat these numbers — which were material events, they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade,” Jones said on “Squawk Box.”
“If they say, ‘We’re on path, things are good,’ then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold,” added Jones, who called the stock market crash in 1987 and is founder and chief investment officer of Tudor Investment.
On the other hand, Jones predicted that markets would be unsettled if the Fed comes out with a different tone Wednesday.
“If they course correct, if they say, ‘We’ve got incoming data, we’ve accomplished our mission or we’re on the way very rapidly to accomplishing our mission on employment,’ then you’re going to get a taper tantrum,” Jones said. “You’re going to get a sell-off in fixed income. You’re going to get a correction in stocks. That doesn’t necessarily mean it’s over.”
The Fed’s two-day policy meeting is scheduled to conclude Wednesday, and Chairman Jerome Powell is set to hold a news conference after the central bank releases its statement at 2 p.m. ET.
Powell and company have maintained their highly accommodative monetary policy approach, which was instituted in response to the coronavirus pandemic. Central bankers have been steadfast despite criticism that massive bond buying and near-zero interest rates are no longer necessary because the economic recovery is well underway and inflation data is concerning.
Powell and other Fed officials say they believe rising prices are likely temporary as the economy reopens from all manner of pandemic-related disruptions, which in turn justifies their policy stance.
“The idea that inflation is transitory, to me … that one just doesn’t work the way I see the world,” said Jones, who added he feels the central bank’s inflation views put its credibility at risk.
In Monday’s “Squawk Box” interview, Jones also reiterated his favorable outlook on bitcoin, calling it a “portfolio diversifier” and a ” story of wealth.” The longtime trader added that he’s grown nervous when considering the stock market’s valuation compared with the overall economy.
“The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities. At this point in time, I don’t know what I want to do with the other 80% until I see what the Fed is going to do,” Jones said.
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I’m watching this a year later and he seems right.
Time Traveler here. Getting my wheelbarrow ready.
Legend
I’m writing from the future s&p is at 3600 now
this one aged very well
United States retail cant move a 10 trillion dollar market cap instrument he want u to try ur luck and lose it lol
maybe injecting trillions of dollars in stock market at every corner and subsidizing inefficient companies is not such a great capitalist idea.
He was right!
Perfect call
How to invest
Cómo lo puedo contactar
Hi sir I just wanted to know, if you have a investment company with the name of Remitanofx
Almost a year later "transitory" finally is going away and now commodities are heading higher. Always good to listen when PTJ speaks.
Main reason for inflation is CRYPTO
He nailed this.
Fantom FTM
He predicted the future exactly.
Turned out to be true
I like Mr. Jones but did he just call the Reddit crowd "bullies"?
defi can change this tho
turn from your sins and believe in THE LORD Jesus Christ and be baptized in THE NAME of THE FATHER, THE SON and THE HOLY SPIRIT if you haven’t already John 3:16
Hi
Another manipulator fund guy, would it surprise any if this big billionaire is the same one who may have guided the 'invisible hand' to keep the rates zero, the same hand he is pointing fingers to publicly. Part of the tribe that has had easiest and biggest access to free money thus provided by Fed to speculate big on stocks, real estate and commodities and dump the downside on public when things go sour
Weight of the Evidence at its finest, long live PTJ!!!
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If you rewatch the video under the assumption PTJ secretly wants to push commodities with this it really sounds sketchy.
Enticing retail investors to back his long commodities trade. Not a good move.
Good man
Look him just try not to smile