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Paul Tudor Jones says ingredients are in place for massive rally before a ‘blow off’ top to bull market
Paul Tudor Jones speaking at the World Economic Forum in Davos, Switzerland, on Jan. 21, 2020.
Adam Galica | CNBC
Billionaire hedge fund manager Paul Tudor Jones believes the conditions are set for a powerful surge in stock prices before the bull market tops out.
“My guess is that I think all the ingredients are in place for some kind of a blow off,” Jones said on CNBC’s “Squawk Box” Monday. “History rhymes a lot, so I would think some version of it is going to happen again. if anything, now is so much more potentially explosive than 1999.”
The founder and chief investment officer of Tudor Investment said today’s market is reminiscent of the setup leading up to the burst of the dotcom bubble in late 1999, with dramatic rallies in technology shares.
“You have to get on and off the train pretty quick. If you just think about bull markets, the greatest price appreciations always [occurs] the 12 months preceding the top,” Jones said. “It kind of doubles whatever the annual averages, and before then, if you don’t play it, you’re missing out on the juice; if you do play it, you have to have really happy feet, because there will be a really, really bad end to it.”
Jones shot to fame after he predicted and profited from the 1987 stock market crash. He is also the chairman of nonprofit Just Capital, which ranks public U.S. companies based on social and environmental metrics.
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