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Paul Tudor Jones Says Buy Stocks on Prospect of Market Highs
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Loading...Billionaire Paul Tudor Jones said investors should buy stocks in the face of new market highs and interest rates cuts.
"We need to be long right now," he said in an interview with Bloomberg.
President Donald Trump's tariff battle with China increases the chances of the Federal Reserve cutting interest rates, laying the foundation for his strategy. The deal is part of a standard strategy he calls "rate cut 101", and gold is his favorite choice over the next 12 to 24 months.
Jones said the Fed was "likely to cut interest rates because of concerns about a slowdown in the economy."
Like many traders, he prepares for an aggressive but short interest-rate cycle. Jones, 64, who heads Tudor Investment Corp., said last June that he expects interest rates to rise "substantially" by the end of 2018. The FED then hiked 3 times by end of 2018.
"I didn't think we would have the first cut in 2019," Jones said. "I don't think we would have gone down if we hadn't gotten into this tariff battle that accelerated everything."
The tariffs already imposed have accelerated the moment when "the Fed will eventually have no choice because the global slowdown will be longer," he said.
Tudor's core hedge fund grew by about 3.8% in the first five months of this year.
Jones also discussed a stockbroking fund that includes socially responsible companies, which JUST Capital launched last year. During the first few days of trading in June 2018, the fund had a market capitalization of approximately $ 250 million. Now it's down to $ 125 million after Goldman Sachs Group Inc. withdraw its share capital.
"I don't think the world still fully understands the JUST ETF," he said. However, Jones is not discouraged and believes the ETF, which has grown 5.1% since its inception, will eventually become popular.
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