Billionaire hedge fund supervisor Paul Tudor Jones II revealed that he’s investing closely in gold and Bitcoin (BTC) as he expects inflationary pressures will persist no matter who wins the 2024 US presidential election.
Talking on CNBC’s “Squawk Field” on Oct. 22, Jones emphasised his perception that inflation is inevitable and defined that his portfolio is now positioned for rising costs. He said:
“I believe all roads result in inflation. I’m lengthy gold. I’m lengthy Bitcoin. I believe commodities are so ridiculously under-owned, so I’m lengthy commodities.”
He additionally praised Bitcoin’s efficiency in the course of the pandemic pushed financial uncertainty in 2020. He added that he stays “lengthy” on Bitcoin, and his agency has additionally taken lengthy positions on the flagship crypto.
Jones stated his buying and selling technique is partially pushed by the expectation that former President Donald Trump will win the US elections in November.
The worth of gold reached a brand new all-time excessive of $2747.40 on Oct. 22, representing a climb of over 37% this 12 months. In the meantime, BTC is priced at $67,154.65 as of now, up 52% in 2024, in response to CryptoSlate knowledge.
Jones highlighted that many younger traders have sought inflation hedges via tech-heavy investments like Bitcoin and the Nasdaq, a method that has been profitable amid market uncertainty.
Avoiding fastened earnings
Amid inflation fears, Jones believes that the US will finally try and inflate its approach out of mounting debt, which mirrors the historic trajectories of different closely indebted nations.
The Congressional Funds Workplace (CBO) initiatives that deficits will rise to $2.8 trillion by 2034, up from $1.8 trillion in fiscal 2024, with US debt anticipated to achieve 122% of GDP by the identical 12 months.
Jones believes the proposed tax cuts and spending from each main political candidates will additional gas inflation and result in greater rates of interest.
Thus, the billionaire shouldn’t be optimistic about holding fixed-income property, stating:
“I’m clearly not going to personal any fastened earnings, and I’m going to be brief the again finish of fastened earnings. As a result of it’s simply fully the improper worth.”
