Advertisement
Features

Paul Tudor Jones: investors can't ignore elections

The 2020 US presidential election will have a massive impact on stockmarkets, reckon staff at Paul Tudor Jones’ investment firm

Paul Tudor Jones © Chance Yeh/FilmMagic

Paul Tudor Jones © Chance Yeh/FilmMagic

The 2020 US presidential election will have a massive impact on stockmarkets, reckon staff at Paul Tudor Jones' investment firm. The billionaire investor told attendees at the Greenwich Economic Forum that an internal poll had found that his employees reckon the S&P 500 could fall by as much as 25% to 2,250 on a victory for Democrat Elizabeth Warren or jump by around 15% to 3,600 if Donald Trump remains in charge, reports CNBC.

Advertisement - Article continues below

Jones dismisses the idea that investors can ignore elections. "It does make a difference. Ronald Reagan, when he became president, was a huge difference to the stockmarket. And I would say who the next president is, is also going to have a huge impact on the economy and the stockmarket, particularly asset pricing." Overall, he adds, this election "is going to be more meaningful than any one certainly in my lifetime".

Jones agrees that Warren's tax-raising policies would likely "cause some economic contraction". That said, he describes Trump as "the greatest salesman" in US history because of his ability to convince the Republican party that running a budget deficit of 5% "is good government policy", and also his efforts to push the Federal Reserve into maintaining negative "real" (after-inflation) interest rates. For his own part, Jones has donated to both Republicans and Democrats in the past, and has expressed admiration for another Democrat candidate, Pete Buttigieg, who he described as having "a compassionate heart".

Advertisement
Advertisement

Recommended

Visit/519858/how-long-can-the-good-times-roll
Economy

How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019
Visit/517688/the-british-equity-market-is-shrinking
Stockmarkets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Visit/511212/reasons-for-investors-to-be-bearish-but-stick-with-the-stockmarket-bulls
Stockmarkets

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019
Visit/510684/good-news-on-jobs-scares-stockmarkets
Economy

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Most Popular

Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/stockmarkets/601611/nasdaq-all-time-high-markets-and-the-real-economy
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020