Billionaire investor Paul Tudor Jones mentioned the inventory market at present is harking back to the latter phases of the bull market in 1999 tha
Billionaire investor Paul Tudor Jones mentioned the inventory market at present is harking back to the latter phases of the bull market in 1999 that noticed a large surge that finally ended with the popping of the dot-com bubble.
“We’re simply once more on this craziest financial and monetary combine in historical past. It is so explosive. It defies creativeness,” Jones mentioned on CNBC’s “Squawk Box” on Monday on the World Financial Discussion board in Davos, Switzerland. “It jogs my memory a whole lot of the early ’99. In early ’99 we had 1.6% PCE, 2.3% CPI. Now we have the very same metrics at present.”
“The distinction is fed funds had been 4.75%; at present it is 1.62%. And again then we had finances surplus and we have a 5% finances deficit,” Jones added. “Loopy occasions.”
Requested if traders ought to promote now to keep away from a blow-up just like the one which occurred in March of 2000, Jones mentioned, “Not likely. The prepare has received an extended, lengthy approach to go if you concentrate on it.”
The legendary hedge fund supervisor and dealer famous that the Nasdaq Composite greater than doubled from an analogous stage to the dot-com bubble high. “That is a good distance from now. On the high theoretically, charges [would] be considerably increased.”
The inventory market hit a peak in 2000 earlier than the dot-com bubble burst. The tech-heavy Nasdaq Composite approached 5,000 in early 2000 then dove 1000’s of factors, crushing traders.
Jones, founder and chief funding officer of Tudor…