Hedge fund billionaire Paul Tudor Jones says he’s eyeing Bitcoin (BTC) and gold as geopolitical conflicts and the likelihood of a recession increase.
In a new CNBC interview, the legendary investor says that he is favoring BTC and the precious metal as he anticipates economic trouble ahead that could send equities into an ugly correction.
[adinserter block="1"]Says Jones,
“I would love gold and Bitcoin together. I think they probably take on a larger percentage of your portfolio than historically they would because we’re going to go through both a challenging political time here in the United States, and we’re going to go through – we’ve obviously got a geopolitical situation.”
Jones says investors will likely pour at least $40 billion into gold as recession approaches, and that Bitcoin also may have a place in cautious portfolios.
“More likely than not we’re going to go into a recession. There’s some pretty clear-cut recession trades. The easiest are: the yield curve gets really steep, term premium goes into the backends of debt markets, into 30-year and 10-year and 7-year paper. The stock market typically – right before a recession — declines about 12%. That’s probably going to happen at some point, from some level. And you look at the big shorts in gold, more likely than not in a recession, the market’s typically really long…
There’s probably $40 billion worth of buying that has to come into gold at some point between now and if that recession actually occurs. So, yes, I like Bitcoin and I like gold right here.”
The Tudor Investment Corporation founder says a recession will likely occur in the first quarter of next year due to the Federal Reserve’s hawkishness and the rising yields on long-term U.S. Treasury bonds.
“So, what’s happening is and why we’re probably going to go in a recession sometime in the first quarter of next year, probably because the bond market, simply through supply-and-demand, is going to deliver more rate hikes because we don’t have a clearing price yet for long-term debt. And so, those rate hikes are probably going to tip us into recession.”
Bitcoin is trading for $27,444 at time of writing, up 0.3% in the last 24 hours.
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