Paul Jones Wants You to Buy Gold
Many investors struggle with the eternal question: “When Should I buy?” and Paul Tudor Jones II, the founder of Tudor Investment Corporation, says the time is now. Jones is also a founder of The Robin Hood Foundation, which helps struggling New Yorkers with their finances. The investor and hedge fund manager claimed in a recent interview with Vonnie Quinn on “Bloomberg Markets” that “the simplest and best trades [are] going to be gold.” Tudor Jones continues on to state that in a world of rates going down, gold has “everything going for it.” Jones subscribes to the global macro trading style. This style emphasizes momentum factors drive markets. Global macro trading strategies are based upon educated assumptions about the economic developments around the world on a macro scale.
The expert investor explained that we have experienced 75 years of globalization and expanding trade. We are now coming to a point where those mechanisms are slowing down, and even coming to a halt. “We have built the machine around the belief that that was the way the world was going to be” Jones elaborated. But now, he claims, that trend has stopped, and we are beginning to reverse that machine. When that happens, Paul Tudor Jones believes we can see the consequences in the form of a recession. Jones estimates we won’t see the effects right away. Rather, the recession will hit over the next 1-3 years. When that recession hits and rates go down, Jones believes “gold will scream.” This means that as finances take a hit, gold prices will be at an all-time high.
Jones advises investors that if they truly believe a recession is approaching, they should stay ahead of the curve and invest in gold now. It is a great idea to buy this precious metal now while prices are fairly steady. Jones anticipates the actions of investors in the coming weeks will have a BIG impact on their finances in the coming years. Those who invest now will likely see great returns on their purchases within the next 12-24 months.
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