Paul Tudor Jones Says Investors Are in Tough Spot With Fed in New Era

(Bloomberg) -- The Federal Reserve is in uncharted territory and investors are facing a period not seen since the 1970s, according to Paul Tudor Jones.

“This is a most challenging period ahead for the Fed in its history,” Tudor Jones, who runs the $12 billion Tudor Investment Corp., said in an interview Tuesday on CNBC. “You can’t think of a worse environment than where we are right now for financial assets,” he added. “Clearly you don’t want to own bonds and stocks.”

The central bank is dealing with dueling forces of inflation and slowing growth and interest rates are likely to reach 2.5% by September, the hedge fund manager said.

Tudor Jones said he’s not sure investors can make money in the current environment and that capital preservation may be the best course.

“There is huge volatility straight ahead,” he said, adding that “inflation is much harder to tame than we think.”

Other comments:

• He reiterated that he has a “modest allocation” to Bitcoin
• He’s “constructive” on commodities and oil

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