Billionaire hedge fund manager Paul Tudor Jones said U.S. stocks could stage a “massive rally” before the current bull market reaches its peak, drawing parallels to the late-1990s tech bubble.
Speaking on CNBC, Jones highlighted what he called an extraordinary policy mix — a 6% U.S. fiscal deficit combined with a Federal Reserve easing cycle — in sharp contrast to 1999, when the U.S. was running a surplus and the Fed was raising rates.
He said that combination could fuel powerful gains in equities over the next year, but warned that the eventual market top may come abruptly and with steep losses, mirroring past speculative climaxes.
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Jones’s comments highlight growing concern that loose U.S. fiscal and monetary policy could inflate asset prices before an eventual correction. His warning may embolden traders positioning for late-cycle gains but also volatility hedges against a sharp reversal.
Had to do it ....
