Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Paul Tudor Jones Interview – Heading Into Recession With Gold Still Being Golden

Paul Tudor Jones is one the most successful investors in the world, who gained fame and fortune by predicting Black Monday stock market crash (October 19, 1987). We found it interesting to hear what he had to say in a recent Bloomberg interview about the current capital market trends, the US recession and what he thinks the best trade in the next two years would be.

In the beginning, Mr. Jones talked about the differences between the current capital market trends and those of almost 50 years ago, pointing out that nowadays profit has become the ultimate and the only goal of any business. Namely, in 1970, around 6.5% of corporate profits was being delivered to shareholders, whereas now that number grew almost by double, or more specifically to 13%. And this happened without the involvement of Congress or anything such, it happened naturally, “as we took everything out of the equation of what the true purpose of a company is other than to make a profit”. Consequences? “Wealth inequality five times what it was 50 years ago”. Unbelievably, around 20 richest Americans have as much money as the poorest 175 million Americans. Mr. Jones further pointed out that if we don’t find a way to resolve this huge asymmetry, we’ll suffer serious consequences.


A word on tariffs, Mr. Jones fears that the tariffs could seriously affect the economy. Depending, of course, on the amount, but he thinks that if they reach $500 billion, it could present the tipping point of pushing us into recession. He stressed out that we haven’t seen something similar in 75 years, that this is the first time in that period free-trade is being reduced, so we can’t really predict the outcome. When it comes to Mr. Jones’ best pick for trade in the next two years, as a macro trader, he would choose gold. He further explained that if it can reach $1,400 an ounce, it will most probably hit $1,700 very soon, “It has everything going for it”.

More details from the interview you can find in the video below.

This article is originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.