Legendary Investor Paul Tudor Jones Says I Like Bitcoin and Gold, Warns of Imminent US Recession

Hedge fund billionaire Paul Tudor Jones says he’s eyeing Bitcoin (BTC) and gold as geopolitical conflicts and the likelihood of a recession increase.

In a new CNBC interview, the legendary investor says that he is favoring BTC and the precious metal as he anticipates economic trouble ahead that could send equities into an ugly correction.

Says Jones,

I would love gold and Bitcoin together. I think they probably take on a larger percentage of your portfolio than historically they would because were going to go through both a challenging political time here in the United States, and were going to go through weve obviously got a geopolitical situation.”

Jones says investors will likely pour at least $40 billion into gold as recession approaches, and that Bitcoin also may have a place in cautious portfolios.

More likely than not were going to go into a recession. Theres some pretty clear-cut recession trades. The easiest are: the yield curve gets really steep, term premium goes into the backends of debt markets, into 30-year and 10-year and 7-year paper. The stock market typically right before a recession — declines about 12%. Thats probably going to happen at some point, from some level. And you look at the big shorts in gold, more likely than not in a recession, the markets typically really long

Theres probably $40 billion worth of buying that has to come into gold at some point between now and if that recession actually occurs. So, yes, I like Bitcoin and I like gold right here.

The Tudor Investment Corporation founder says a recession will likely occur in the first quarter of next year due to the Federal Reserves hawkishness and the rising yields on long-term U.S. Treasury bonds.

So, whats happening is and why were probably going to go in a recession sometime in the first quarter of next year, probably because the bond market, simply through supply-and-demand, is going to deliver more rate hikes because we dont have a clearing price yet for long-term debt. And so, those rate hikes are probably going to tip us into recession.

Bitcoin is trading for $27,444 at time of writing, up 0.3% in the last 24 hours.

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This article was originally reported on The Daily Hodl.