Billionaire investor Paul Tudor Jones told CNBC that the impressive growth in US markets is due to the explosive combination of light monetary policy and lower taxes.
For him, this combination is one of the most unusual and is potentially explosive in ways you can hardly imagine.
The Federal Reserve has cut interest rates three times this year. Fed chairman Jerome Powell has already suggested that the cycle of interest rate cuts is already on pause.
After the last rate cut in October, stock markets rose without any halt. Jones believes that whatever damage was caused by the trade war, monetary policy should have already alleviated them.
Shares are also fueled by Trump's intentions to introduce new corporate tax breaks. The combined circumstances prompt Jones to think that markets will continue to rise in price in a rather aggressive manner.
Paul Tudor Jones became famous during the crashes in 1980 and 1987. He created JUST U.S. The Large Cap Equity ETF in 2018, with the fund up 23.4% this year, passing the S & P500 by 0.1%.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.