Paul Tudor Jones Talks Economy And A Juster Corporate America

Asked to comment on the much-discussed Fed rate hike, Jones stated his belief that the central bank is eager to start increasing interest rates because they are not comfortable with the size of their balance sheet. According to him, another important factor that puts pressure on central bankers to raise rates is the increasing global debt-to-GDP ratio. The fact that the Fed is more concerned with its balance sheet than the “local economic environment” is troubling Jones, who believes it will lead to a “choppier market” in the near future. He points to the bearish commodities market and slowing global growth, variables that would normally prompt actions aimed at expanding, not contracting monetary policy.

Having founded Tudor Investment Corp in 1980, Paul Tudor Jones became famous by predicting the 1987 stock market crash and has been a notable Wall Street figure since then. His fund currently manages a public equity portfolio valued at more than $3.42 billion, with significant exposure to technology and financial stocks. As of the end of June, Jones has a new favorite stock: Facebook Inc (NASDAQ:FB). During the second quarter he acquired 2.45 million shares of the social network company, taking his investment to more than 2.5 million shares. Jones is also a big fan of DIRECTV (NASDAQ:DTV), having expanded his investment to 503,300 shares, and Time Warner Cable Inc (NYSE:TWC), with Tudor Investment having reported ownership of 213,757 shares in its latest 13F filing.

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