Billionaire hedge fund manager Paul Tudor Jones II recently disclosed his heavy investments in gold and Bitcoin (BTC) in anticipation of persistent inflationary pressures, regardless of the outcome of the 2024 US presidential election.
During an appearance on CNBC’s “Squawk Box” on Oct. 22, Jones emphasized his conviction that inflation is inevitable and shared that his investment portfolio is now strategically positioned for rising prices. He stated:
“I think all roads lead to inflation. I’m long gold. I’m long Bitcoin. I think commodities are so ridiculously under-owned, so I’m long commodities.”
Jones also commended Bitcoin’s performance amidst the economic uncertainty brought on by the pandemic in 2020. He expressed his continued bullish stance on Bitcoin and revealed that his firm has taken long positions on the flagship cryptocurrency.
Attributing his trading strategy in part to the expectation of former President Donald Trump winning the US elections in November, Jones highlighted the surge in the price of gold, which hit a new all-time high of $2747.40 on Oct. 22, marking a year-to-date increase of over 37%. Meanwhile, BTC is currently priced at $67,154.65, showing a 52% increase in 2024, according to data from CryptoSlate.
Jones pointed out that many young investors have turned to inflation hedges like Bitcoin and tech-heavy investments such as the Nasdaq, a strategy that has proven successful amidst market volatility.
Avoiding Fixed Income
Amid concerns over inflation, Jones believes that the US will likely resort to inflating its way out of escalating debt, a trend observed in other heavily indebted nations throughout history.
According to projections from the Congressional Budget Office (CBO), deficits are expected to climb to $2.8 trillion by 2034, up from $1.8 trillion in fiscal 2024, with US debt projected to reach 122% of GDP by the same year.
Anticipating that the proposed tax cuts and spending plans from both major political candidates will further fuel inflation and prompt higher interest rates, Jones expressed skepticism towards holding fixed-income assets, stating:
“I am clearly not going to own any fixed income, and I’m going to be short the back end of fixed income. Because it’s just completely the wrong price.”
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