The stock market continues on a wave of optimism that just doesn’t seem to quit.
The S&P 500 continues to notch new highs, as investors price in fresh Fed cuts, while cash once parked on the sidelines is circling back into risk. On top of that, with inflation easing, the tone at this point feels more about late-cycle frenzy than steady expansion.
Big names have quietly been inching their targets higher, suggesting that the bulls may have one last run left. However, beneath the cheer is a sense of uneasiness, because not everyone sees a rosy picture.
That’s exactly where Paul Tudor Jones, the billionaire macro trader regarded as one of the most successful hedge fund managers of all time, comes in with a hot new take that cuts through the noise.
In a brand-new sit-down interview on CNBC, he dropped a jolting message about the stock market with major implications that could ripple far beyond traders chasing down year-end gains.
Paul Tudor Jones is an investing giant who’s often referred to as a macro trading pioneer.
He’s the founder and CIO of Tudor Investment Group, a firm that’s been in the hedge fund business since 1980.
Jones’s latest 13F portfolio lists a head-turning 3,177 positions (528 new) with a reported market value exceeding $45.92 billion and a 16% quarterly turnover.
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Some of his biggest holdings include the SPDR S&P 500 ETF Trust (SPY), iShares Bitcoin Trust (IBIT), Spirit AeroSystems, and Apple (AAPL).
Over the years, he’s built a reputation as an archetype of a global macro trader, having been featured in Jack Schwager’s “Market Wizards” as perhaps the face of defense-first risk.
Jones’s credo is simple: “The most important rule of trading is to play great defense, not great offense.” The philosophy was built on tight stops that risk a little to make a lot instead of chasing big wins.
Perhaps his legend was crystallized on Black Monday (Oct. 19, 1987), when he correctly predicted the crash and profited in the process, which became his career-defining move.
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1980: Founded Tudor Investment Corporation with a global macro focus.
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1987: Calls and profits from Black Monday catapulted him to fame.
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1988: Launches the Robin Hood Foundation to efficiently fight poverty in NYC.
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1989: Featured in “Market Wizards” (“The Art of Aggressive Trading”).
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2020: Endorses Bitcoin as an inflation hedge (“fastest horse”).
