RE:Paul Tudor Jones..Inflation genie out of the bottle...metalhead666 wrote: Smart guy....says rates are going to double from here....that there's trillions sitting on the sidelines to fuel inflation...sooner or later the FED is going to have to go full tard and jack rates....Says that buybacks and all this cash will fuel the stock mania but at some point the "market" could get cut in half. Likes crypto, commodities, TIPS and anything that defends your wealth from ripping inflation. Paints a very dire picture for society in general.
Sounds to me like stonks could have a rip your face off move higher into year end and that the party won't end until the FED is forced to go full Paul Volker and massively raise rates to combat out of control inflation. That's when it will all implode. If rates were to ever "normalize" it would consume the entire tax base just to service the massive debt this country has let alone what it would do to every zombie company buried in debt, housing, the over leveraged unwashed masses
So...I'll bet against the bond market and scale into a short....If there's a pull back in TGB I'll start scaling back in...seems that copper will hold up in Mr Jones scenario so TGB has some margin of safety BUT....a 50% haircut in the stonk market would savage everything
Bottom line...we're in some deep $hit now...the FED is trapped....stuff will start breaking...there's going to be some severe consequences and extreme volatility in the months ahead.....tread lightly...this is an extremely dangerous time. Don't swing for the fences, be nimble, don't get married to any one thesis....one way or the other we're headed for the wall at warp speed it's only a matter of how long and what happens along the way.
Paul Tudor Jones is a smart dude...I agree with him except for his take on Bitcoin
They can't afford to Jack rates. The Fed govt can't afford it. They would be raising rates on themselves. They are going to let inflation run.