jakiro
Source: Jinshi Data
Paul Tudor Jones, billionaire hedge fund manager and founder and chief investment officer of Tudor Investment, issued a harsh warning Tuesday even as U.S. President Trump lowered his aggressive tariffs,US stock markets are set to hit new lows.
“For me, it’s clear. Trump locked in tariffs. The Fed insisted on not cutting interest rates. It’s bad for the stock market,”Jones said on CNBC’s “Squawk Box”.“We’re likely to fall to a new low.”
‘He would put the tax rate back 50% or 40%, whatever it was. Even if he did… it would be the biggest tax increase since the 1960s,’ continued Jones, who is widely concerned, “so you can subtract 2%-3% from economic growth.”
Last week’s GDP report showed that ominous storms were gathering over the U.S. economy: GDP was -0.3% in the first quarter, the first negative growth since the first quarter of 2022.Jones believes that the stock market has not yet found a bottom due to the continued deterioration of macroeconomic conditions.
Federal Reserve Chairman Powell said he expects policymakers to wait for the impact of trade policy to be “brighter” before further adjustments.As of Tuesday, the pricing of interest rate swaps was the Fed’s three 25 basis points cuts by the end of the year, the first time it was expected in July.
Jones said:“Unless they’re really dovish and really cut rates, U.S. stocks are likely to fall to a new low. When we hit new lows, a tough day will start and that may prompt the Fed to take action and prompt Trump to take action. Then we get some reality.”
Jones became famous for predicting the 1987 stock market crash and profiting from it.
In addition to concerns about trade wars and markets,Jones is also deeply uneasy about the development of artificial intelligence, who believes that the threat of artificial intelligence to humans is imminent..
Share the gains from an exclusive technology conference he attended recently, Jones said that while artificial intelligence can be a “power of good” in health and education, experts at the conference believed that “artificial intelligence will obviously pose an imminent security threat to humans in our lifetime.”
As part of its doomsday warning — exactly like Elon Musk and BCA Research said in recent years, Jones warned: “In the next 20 years, 10% of AI is likely to kill 50% of humans.”
Jones is vague about the specific details of their argument, but mentions “biohackers” and “weapons.”
