Billionaire investor Paul Tudor Jones calls geopolitics ‘most threatening’ he’s seen
Billionaire investor Paul Tudor Jones called the current geopolitical environment the “most threatening and challenging” he’s ever seen in the wake of Hamas’ attack on Israel over the weekend and predicted the U.S. would enter into a recession early next year.
“Where this really gets bad is obviously if Iran and Israel get into direct conflict, because then you’ve got the ability to have kind of a First World War cascade, where everyone gets involved,” Jones, founder of Tudor Investment Corp., said in an interview Tuesday on CNBC.
The big question now is if Hamas was a proxy for Iran or was simply an ally, he said.
Jones predicted that a recession would start in the first quarter of 2024, saying the U.S. is in its weakest fiscal position since World War II. The country needs to find $1 trillion in savings by 2025 and should raise taxes and cut spending, he said.
“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,” Jones said. “So those rate hikes are probably going to tip us into recession.”