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

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.

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".

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

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

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
Stock markets

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
Stock markets

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/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/commodities/gold/600874/gold-is-at-its-highest-level-in-years-heres-how-to-invest
Gold

Gold is at its highest level in years – here’s how to invest

Gold's rise at a time when the dollar is unnervingly strong isn't unheard of – but it is curious. John Stepek explains what's going on, and what it me…
21 Feb 2020
Visit/economy/uk-economy/600862/britains-economy-might-spring-a-surprise-on-the-doomsayers-this-year
UK Economy

Britain’s economy might spring a surprise on the doomsayers this year

The UK economy is looking pretty good – we’re more at risk of a boom than a bust, says John Stepek. Here’s why, and what it means for your portfolio.
20 Feb 2020
Visit/investments/stockmarkets/european-stockmarkets/600725/is-2020-the-year-for-european-small-cap
Sponsored

Is 2020 the year for European small-cap stocks?

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, on why he believes European small-cap stocks are performing well.
12 Feb 2019