Paul Tudor Jones says ingredients are in place for massive rally before a ‘blow off’ top to bull market
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 and heightened speculative behavior. Jones said the circular deals or vendor financing happening in the artificial intelligence space today also made him “nervous.”
The tech-heavy Nasdaq Composite has bounced 117% from its April bottom to consecutive record highs. The rally has been driven by mega-cap tech giants, which have invested billions in AI and are being valued richly on the potential of this emerging era.
