Geopolitical risks and rising US government debt make investing in stocks difficult, but gold and Bitcoin are attractive options. Billionaire Paul Tudor Jones said this in an interview with CNBC.
The founder of hedge fund Tudor Investment called the United States’ fiscal position, with a debt-to-GDP ratio of 122%, “probably the weakest since World War II.”
“As interest rates rise in the US, you get into a vicious cycle: the increase causes higher financing costs, more debt issuance and further liquidation. This leads to further increases in rates, which puts us in an untenable financial situation,” Jones explained.
The war between Israel and Hamas has created a complex geopolitical environment for risk asset markets, he said. Before investing in such products again, the billionaire intends to assess the consequences of the conflict. However, he did not rule out the possibility of nuclear war due to the alleged role of Iran.
“I may not love stocks, but I love Bitcoin and gold,” he emphasized.
In 2021, Jones promised that he would allocate 5% of capital to the first cryptocurrency due to the policies of the US Federal Reserve. Before that, he estimated his Bitcoin assets at $100 million. At that time, this was the equivalent of 1-2% of his wealth.
A year later, he confirmed that he continues to hold a position in digital gold.
Recall that in May, Jones again assured that he remains faithful to Bitcoin, but expressed concerns about the unfriendly regulatory environment for cryptocurrency in the United States.
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