Wealthier Paul Tudor Jones said the Federal Reserve Chairman Jerome Powell will struggle to curb inflation, resulting in difficulties for a wide range of financial assets. rice field.
Jones, CEO of hedge fund manager Tudor Investment, said in an interview with CNBC yesterday that Powell “has a lot of need to catch up.” “We are preparing for a major shift, which will have a significant impact on the prices of various assets,” he said.
He also said that the recent debate on quantitative tightening by monetary authorities reflects the authorities’ perceptions of the urgency of inflation. The consumer price index (CPI) in November last year increased by 6.8% from the same month of the previous year. US financial authorities are under pressure to consider raising rates sooner and faster.
US Federal Reserve Abandons Gradualism-Urgent for Rate Hike and Quantitative Tightening
Inflationary trades and the most successful trades since March 2020 will hit the wall and will probably outperform others, he said. There is a gap between the strong labor market and the current level of interest rates and stock multiples (investment scale).
Commodities appear to be “terribly undervalued” compared to financial assets, and are expected to significantly outperform financial assets as the tightening cycle progresses.
Original title:Paul Tudor Jones Says Powell Has a Lot of Catching Up to Do (1)(excerpt)
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