Billionaire hedge fund manager Paul Tudor Jones claimed that he is closely following Bitcoin (BTC) and gold due to the increasing possibility of geopolitical conflicts and recession. Here’s a critical comment from the senior analyst!
In a recent CNBC interview, the legendary investor claimed that he prefers BTC and gold because he predicts economic hardship that could send stocks into a major correction. Paul Tudor Jones said the following about the matter:
I would love to have gold and Bitcoin together. I think they are probably taking a larger percentage of your portfolio than historically because we are going through a tough political period here in the United States, and we will be going through this process… Obviously, the geopolitical situation is significant.
Paul Tudor Jones mentioned that as the recession approaches, investors will likely transfer at least $40 billion to gold, and Bitcoin could have a place in cautious portfolios. In his positive comments about BTC, the analyst stated:
We will most likely enter a recession. There are very clear recession trades. The easiest one is the yield curve really steepening, futures premiums going to the back end of the bond markets, the 30-year, the 10-year, and the 7-year notes. The stock market generally tends to decline about 12% right before a recession. It will probably happen at some point, from some level. When you look at the big hole in gold, there is probably $40 billion of buying that needs to come in at some point between now and whenever this recession actually turns into one. So yes, I like Bitcoin, and I like gold here.
The founder of Tudor Investment Corporation stated that due to the hawkish stance of the Fed and increasing yields of long-term US Treasury bonds, it is likely that a recession will occur in the first quarter of next year. The expert emphasized the following in his statements:
So, the reason why we are probably going to have a recession in the first quarter of next year is that the bond market will probably make more interest rate hikes through supply and demand because we don’t have a swap price yet for the long-term debt. So these interest rate hikes will likely push us into a recession.