A Billionaire hedge-fund manager stated Tuesday that he can’t imagine a worse investment environment amid rising interest rates.
During an appearance On CNBCs Squawk Box, Tudor Investment Co. founder and chief investment officer Paul Tudor Jones said investors are in uncharted territory.”
The Federal Reserve will announce a 0.5 percent increase in its baseline interest rates range. This is the latest in a series to cool inflation.
The Fed wants to reduce inflation but not interrupt economic growth. However, economists are becoming more concerned that the bank won’t be able do this without causing a recession.
Jones, who had predicted the Stock Market crash in 1987, was asked if the country was headed into recession. He replied that markets were showing some worrying signs.
Jones stated that there is no better environment for financial assets than the one we have right now. You don’t want to have stocks and bonds.
Jones advised investors that they should prioritize capital preservation to weather the tough financial climate.
Jones said that in these difficult times, simple capital preservation is what I believe is the most important thing we should strive for. It is possible that it will be one of those times when you actually try to make money.
