Billionaire hedge fund manager Paul Tudor Jones announced that he is investing in gold and bitcoin, predicting inflation regardless of who becomes president. In an interview with CNBC’s “Squawk Box,” Jones stated, “I think all roads lead to inflation.” He has started to position his portfolio for a potential Trump victory in the 2024 election and believes that commodities are underinvested.
Jones expressed concern about U.S. debt levels, which he thinks may increase more than current forecasts predict. The Congressional Budget Office (CBO) estimates deficits could reach $2.8 trillion by 2034 and that national debt may rise to 122% of GDP.
He warned that proposed tax cuts and spending by presidential candidates could lead to inflation, affecting Treasury markets and causing interest rates to rise. Currently, the 10-year U.S. Treasury yield is above 4.2%. “I will not own any fixed income and will short the back end of fixed income,” Jones remarked.
This week, gold reached an all-time high of $2,740.37, up 32% this year, while bitcoin has gained 57% in the same period.
