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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPaul Tudor Jones Says U.S. Stocks Should Terrify Janet Yellen
Billionaire investor Paul Tudor Jones has a message for Janet Yellen and investors: Be very afraid.
The legendary macro trader says that years of low interest rates have bloated stock valuations to a level not seen since 2000, right before the Nasdaq tumbled 75 percent over two-plus years. That measure -- the value of the stock market relative to the size of the economy -- should be terrifying to a central banker, Jones said earlier this month at a closed-door Goldman Sachs Asset Management conference, according to people who heard him.
Jones is voicing what many hedge fund and other money managers are privately warning investors: Stocks are trading at unsustainable levels. A few traders are more explicit, predicting a sizable market tumble by the end of the year.
Last week, Guggenheim Partners Scott Minerd said he expected a significant correction this summer or early fall. Philip Yang, a macro manager who has run Willowbridge Associates since 1988, sees a stock plunge of between 20 and 40 percent, according to people familiar with his thinking.
https://www.bloomberg.com/news/articles/2017-04-20/paul-tudor-jones-says-u-s-stocks-should-terrify-janet-yellen
I'm getting a bit nervous myself.
Squinch
(50,949 posts)uponit7771
(90,335 posts)Jim Beard
(2,535 posts)I will wait to see what kind of tak cuts they will pass, and they will. After they have passed the tax cuts for some time, I would sell.