While some investors believe that the market has already priced in the Fed’s expected 50 basis points interest rate hike, billionaire investor Paul Tudor Jones recently warned viewers of CNBC’s “Squawk Box” that owning stocks or bonds may not be a wise investment under current conditions.
“Clearly you don’t want to own bonds or stocks, you start with that,” Jones stated, adding that “it’s going to be a very, very negative situation for either one of those assets classes.”
Jones also said that “you can not think of a worse macro environment than where we are right now for financial assets.”
In today’s economy, investors are facing unprecedented challenges. The central bank has only tightened monetary policy during periods of economic growth and stability in the past, making this particular slowdown even more treacherous. But according to the founder and chief investment officer of Tudor Investment, there is one thing investors must prioritize above all else: capital preservation.
“We’re in one of those very difficult periods where simply capital preservation is the most important thing we can strive for. I don’t know if it’s going to be one of those periods where you’re actually trying to make money,” Jones said.
In the billionaire’s view, this means that in such a challenging environment we should be cautious with our investments and focus on protecting our assets rather than taking risks or chasing high returns. Given that anything can now happen in the markets, he urges investors not to venture anywhere that is uncharted territory but instead to stick to what they know.
“It’s hard to not want to be long on crypto”
Tudor Jones, well known for his Bitcoin investment, was also asked whether he is still long on crypto. He responded by saying that “it’s hard to not want to be long on crypto”, noting that “just the sheer amount of intellectual capital that’s going into that space and clearly, if you think about the ultimate dream of crypto…that opens up just huge possibilities.”
Jones also said he believes crypto “will have a bright future as we roll through these rate hikes at some point in time.”
In fact, top crypto influencers like Jones, who in May 2020 put nearly 2% of his $5 billion worth in Bitcoin, continue to stand by their investments and remain confident in the future of this dynamic and exciting space. And with so many new advancements being made on a daily basis, it’s easy to see why a long term investing strategy in crypto remains a smart choice.
As of press time, Bitcoin is changing hands at $37.695, down about 2% intraday.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice