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Billionaire hedge fund manager issues chilling stock market warning: ‘We'll probably go down’
Billionaire investor Paul Tudor Jones warns stock market could hit new lows even if Donald Trump cuts China tariffs to 50%
Paul Tudor Jones has issued a chilling warning for the stock market. During an appearance on CNBC's Squawk Box, the billionaire hedge fund manager said that share prices will hit new lows even if Donald Trump reduces his tariffs on China to 50%.
Billionaire investor issues chilling stock market warning
“For me, it’s pretty clear. You have Trump who’s locked in on tariffs. You have the Fed who’s locked in on not cutting rates. That’s not good for the stock market,” Jones said. “We’ll probably go down to new lows, even when Trump dials back China to 50%,” he added.
The 70-year-old, whose net worth, according to Forbes, is $8.1 billion, went on to say, “He’ll dial it back to 50% or 40%, whatever. Even when he does that ... it’d be the largest tax increases since the 60s,” adding, “So you can kind of take 2%, 3% off growth.”
Jones' remarks come after the US president shocked the world by imposing aggressive global tariffs. Last month, Trump imposed a whopping 145% tariffs on goods imported from China. The Asian country retaliated with 125% levies on the majority of US imports.
“Unless they got really dovish and really, really cut, you’re probably gonna go to new lows,” Jones went on. “And then when we’re new lows, the hard day will start to follow, and it’ll probably create the Fed to move, create Trump to move. And then we’ll get some kind of reality,” he added.
During a recent interview with NBC's Meet the Press with Kristen Welker, Trump said that he would “eventually” lower the tariffs on China. “At some point, I’m going to lower them because otherwise, you could never do business with them,” he said.
However, the commander-in-chief cited China's “collapsing” economy as the reason behind his softening stance. “They want to do business very much … their economy is collapsing,” Trump said.
