Billionaire investor Paul Tudor Jones is doubling down on his stark market warning that the current market environment feels “exactly like 1999.”
Paul Tudor Jones Warns Of A Stock Market Blow-Off
The founder of Tudor Investment Corporation told CNBC on Tuesday that the “ingredients are in place” for a massive “blow off” rally, but cautioned it would be followed by a “really, really bad end.”
Speaking on ‘Squawk Box,’ Jones was unequivocal in his comparison: “It’s 1999… party like it’s 1999, right? It feels exactly like 1999.” He advised that from a trading standpoint, “you have to position yourself like it’s October of ’99,” referencing the period just before the Nasdaq doubled in five months.
However, Jones heavily stressed the need for caution, warning that investors must “have really happy feet because there will be a really, really bad end to it.”
This commentary forcefully reiterates a similar forecast Jones delivered on the same program on Oct. 6. In that earlier appearance, he issued a similar warning.
How Is Fiscal And Monetary Policy In 2025 Different From 1999?
In his latest Oct. 28 appearance, Jones elaborated on why the current setup is “so much more potentially explosive than 1999.”
He contrasted the 1999 environment—which featured a budget surplus and impending rate hikes—with today’s 6% budget deficit and expected rate cuts.
Jones argued this creates an unprecedented macroeconomic mix. “That combination, that fiscal monetary combination is a brew that we haven’t seen since… the postwar period,” he stated. To capitalize on the “speculative frenzy” this brew could create, Jones identified gold, crypto, and the Nasdaq as his preferred assets.
See Also: Paul Tudor Jones Sees Stock Market Blow-Off With A ‘Really, Really Bad End’
Fed Rate Cuts, Trump-Xi Meet Fuel S&P 500 Rally, Nearing 7,000
The S&P 500 hit a fresh 52-week high on Tuesday, breaching the 6,900 level to touch 6,911.30 intraday.
This market optimism comes as the Federal Reserve is broadly expected to announce a 25-basis-point interest rate cut on Wednesday and President Donald Trump and Xi Jinping are set to meet on Thursday.
Year-to-date, the S&P 500 is up 17.42%, while the Dow Jones and Nasdaq 100 have posted gains of 12.54% and 24.01%, respectively.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.19% at $688.35, while the QQQ advanced 0.36% to $635.21, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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