Paul Tudor Jones sees more volatility, saying stocks may fall 15% before rebounding
Billionaire investor Paul Tudor Jones says the stock market will continue in 2019.
" I think we will see much more of what we just so, which is much more volatility, "Jones told CNBC Andrew Ross Sorkin in an interview with Squawk Box on Monday." It's very easy to say "I'm very bullish" or "I'm really bearish. I'm looking at a duplex market."
"I think the next year it will be where we are today … at least 10 percent down and 10 percent up, maybe 1[ads1]5 percent, no matter where we are right now, Jones said.
Wall Street has been caught by volatility. The major stock indices last week posted their biggest weekly decline since March as fear of an economic downturn and rising US and Chinese trade tensions pushed investors out of stock.
Shares may fall between 10 and 15 percent next year from today's level, driven by rising global credit and falling commodity prices, according to Jones. "We are sitting probably on a big global credit bubble, "he said." I hope I do not underestimate the effect of the potential negative impact that pops that bubble. "
However, this potential decline may cause the Federal Reserve to stop interest rates in 2019, which may increase stock prices along with continued company backcountry programs. Jones is expected to raise prices at a meeting next week "All I want to say is that there is a high likelihood that this trip, assuming they go, will be the last for a long time," said Jones.
Jones, founder of Tudor Investment, is known for making big calls on the market. One of his biggest calls included the correct prediction of crash in 1987.
He told CNBC on July 12 that stocks could be "crazy" until 2018. The S & P 500 is down at more than 1 percent for the year and has dunked more than 10 percent since he turned a full-time on September 21st.
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