Billionaire hedge fund manager Paul Tudor Jones II revealed significant investments in gold and Bitcoin (BTC) due to anticipated inflation post the 2024 US presidential election.
In an interview on CNBC’s “Squawk Box” on Oct. 22, Jones expressed confidence in forthcoming inflation and realigned his portfolio to prepare for rising prices. He commented:
“I think all roads lead to inflation. I’m long gold. I’m long Bitcoin. I think commodities are so ridiculously under-owned, so I’m long commodities.”
He commended Bitcoin’s resilience during the pandemic-induced economic uncertainty in 2020 and reaffirmed his commitment to the crypto asset. Jones’ firm has also taken extensive positions in Bitcoin.
Jones’ investment decisions were influenced by his belief in former President Donald Trump‘s potential victory in the US elections.
Gold hit a record high of $2747.40 on Oct. 22, marking a 37% increase in 2024. Concurrently, BTC is valued at $67,154.65, up 52% this year according to CryptoSlate data.
Jones observed that many young investors seek inflation hedges through tech-focused investments like Bitcoin, a strategy that has proven effective in uncertain markets.
Avoiding fixed income
Amid rising inflation concerns, Jones anticipates the US will resort to inflating its way out of mounting debt, following the patterns of heavily indebted nations in history.
The Congressional Budget Office (CBO) projects deficits climbing to $2.8 trillion by 2034, up from $1.8 trillion in fiscal 2024, with US debt projected to reach 122% of GDP by then.
Jones predicts that proposed tax cuts and spending by major political candidates will exacerbate inflation and drive up interest rates.
Hence, the billionaire refrains from holding fixed-income assets, remarking:
“I am clearly not going to own any fixed income, and I’m going to be short the back end of fixed income. Because it’s just completely the wrong price.”
