Paul Tudor Jones speaking to the World Economic Forum in Davos, Switzerland, January 21, 2020.
Adam Galica | CNBC
The head of the billionaire hedge fund, Paul Tudor Jones, said that actions on Tuesday would not be struck new, even if President Donald Trump reduces his aggressive prices on China.
“For me, it’s quite clear. You have Trump who is locked up on the prices. You have the Fed that is locked up on the cup rates. It’s not good for the stock market,” said Jones on the “Squawk Box” of CNBC. “We are likely to go down to new stockings, even when Trump reduces China to 50%.”
The widely followed investor comments came after Trump’s deployment of the highest samples on generation imports shocked the world last month, triggering extreme volatility to Wall Street. The S&P 500 has undergone a serious sale, but has since recovered a large part of the losses, seated 8% below its top of all time.
Trump slapped 145% tariffs on Chinese products imported this year, which prompted China to impose 125% reprisal levies. China said that last week, it estimated the possibility of starting trade negotiations with the United States
“It will come back to 50% or 40%, whatever. Even when it will … it would be the highest tax increases since the 1960s,” said Jones. “So you can gain growth of 2%, 3% discount.”
Jones, the founder and investment director of Tudor Investment, believes that the shares have not found a substance because the macroeconomic conditions continue to deteriorate. The Fed has kept its night loan rate since December in a range between 4.25% and 4.5%. The president of the Fed, Jerome Powell, said that he expects political decision -makers “to expect greater clarity” on the ramifications of the commercial policy before adapting more.
“Unless they become really dominant and really, really cut, you will probably go to new stockings,” said Jones. “And then when we are new stockings, the difficult day will start to follow, and it will probably create the Fed to move, create Trump to move. And then we will have a kind of reality.”
Jones took on glory after predicting and benefiting from the 1987 stock market crash. He is also president of the non -profit association Just Capital, which classifies public American companies according to social and environmental measures.
