before making a move to 2500-3500…
An Apocalyptic Paul Tudor Jones Warns The Fed Is About To Lose Control
In a striking interview with Goldman’s Allison Nathan, legendary trader Paul Tudor Jones argues that US inflation is set to accelerate sharply, making bonds a very poor investment, and that the Fed must act swiftly to tackle financial bubbles created by prolonged monetary easing.
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When would Tudor buy stocks? “When would I want to buy stocks? When the deficit is 2%, not 5%, and when real short-term rates are 100bp, not negative“… in other words not for a while.
So what is he buying: “I want to own commodities, hard assets, and cash… The S&P GSCI index is up more than 65% from its trough two years ago. In fact, relative to financial assets, the GSCI is at one of its lowest points in history.
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That has historically been resolved by commodities putting on a stunner of a show, stoking inflation. I wouldn’t be surprised if that happened again.“
In other words, PTJ and Gundlach agree on two things: stay away from bonds, and buy commodities.
But the most notable part of the interview, and where PTJ’s most apocalyptic sentiment shines through, is his description of where he sees Fed Chair Powell right now: as General Custer before the Battle of Little Big Horn, a battle which – at least in the history books – was lost.
https://www.zerohedge.com/news/2018-03-01/apocalyptic-paul-tudor-jones-warns-fed-about-lose-control
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