Paul Tudor Jones will give a lecture at the World Economic Forum in Davos, Switzerland on January 21, 2020.
Adam Gallica | CNBC
Billionaire hedge fund manager Paul Tudor Jones said stocks would hit new lowest stocks on Tuesday, even if President Donald Trump lowers aggressive tariffs in China.
“To me, that’s pretty clear. You have Trump trapped in tariffs. You’re not good for the stock market, not good for the stock market,” Jones said on CNBC’s “Squawk Box.” “Maybe even when Trump brings China back to 50%, it’s probably going to fall to a new low.”
Bearish comments from investors have continued widely after Trump rolled out the highest taxation on generational imports last month, causing extreme volatility on Wall Street. The S&P 500 was struggling with a serious sale, but has since recovered much of its losses, falling 8% below its all-time high.
Trump slapped 145% tariffs on imported Chinese goods this year, urging China to impose a 125% retaliation. China said last week it is assessing the possibility of commenceing trade negotiations with the US.
“He dials it 50% or 40%. Anything. “So you can get 2%, 3% off growth.”
Jones, founder and chief investment officer of Tudor Investment, believes that stocks have not found a bottom as macroeconomic conditions continue to deteriorate. The Fed has been stabilizing its overnight lending rate in the range of 4.25% to 4.5% since December. Federal Reserve Chairman Jerome Powell said he hopes policymakers will “wait more clearly” for the impact of trade policy before further adjustments.
“Unless they’re really solid and really, really cut, you’re probably going to go to the new lowest,” Jones said. “And when we get a new low, a tough day begins to go on, and maybe it’s creating and moving the Fed, creating and moving cards, and then getting some reality.”
Jones rose to fame after earning profits from the stock market conflict in 1987. He is also chairman of Just Capital, a nonprofit organization that ranks public US companies based on social and environmental indicators.
