Paul Tudor Jones: ‘Explosive Combination’ Of Forces Pushing Market Higher

Billionaire investor Paul Tudor Jones is a big fan of the current market.

In particular, Jones believes that the US economy is feeling the boost of both lower taxes and a lax monetary policy.

“We’ve got an explosive combination of monetary and fiscal policy right now,” said Jones.

Jones continued, “We’ve got a 5% budget deficit coupled with the lowest real rates that you can image with the economy at full employment.”

“That’s the most unorthodox and potentially explosive combination that you can imagine.”

Jones concluded by saying, “It’s like the photo negative of 1930 when we had the last trade war, but you had tight fiscal and tight monetary policy. Now we have the exact opposite.”

Jones expects the combo of lower taxes and an easy monetary policy will drive the markets to new record highs. 

Glass half full

The man behind the Fed’s monetary policy is the architect of that policy, Jerome Powell.

The Federal Reserve cut rates three times in 2019, with the last rate cut coming in October.

The Fed’s target rate is now somewhere between a range of 1.5% to 1.75%.

All indicators point that the October rate cut was the last rate cut for a while, barring some unforeseen economic disaster.

Powell, on the current economy, has said, “At this point in the long expansion, I see the glass as much more than half full.”

Powell continued, “With the right policies, we can fill it further, building on the gains so far and spreading the benefits more broadly to all Americans.”

Powell then went on to say that the Fed’s current goal moving forward was to maintain a rate of 2% inflation.

“It is essential that we at the Fed use our tools to make sure that we do not permit an unhealthy downward drift in inflation expectations and inflation,” said Powell.

Powell concluded by saying, “We are strongly committed to symmetrically and sustainably achieving our 2 percent inflation objective so that in making long-term plans, households and businesses can reasonably expect 2 percent inflation over time.”

Warren Buffett’s Favorite Indicator Suggests a Stock Crash Is Coming

Anyone in the realm of finance or the stock market knows Warren Buffett. He is the billionaire CEO of Berkshire Hathaway and has been one of the world’s best investors

Some Expected a Junk Bond Explosion. The Data Says Different.

It has been well documented that much corporate debt has been downgraded by the rating services over the course of this pandemic slowdown. However, the actual data shows it not

Iaccino: Some Quick Stock Ideas for an Unsettled Market

RealDaily's Bob Iaccino recently appeared on the Alpha Trader podcast (available here). Co-founder of PureXposure Growth Series and Chief Strategist at Path Trading Partners, Bob writes The Stock Think Tank

biden wins

What I’m Telling Investors to Do If Biden Wins the White House

The value of our Bulletproof Wealth Report model portfolio declined modestly over the past several trading days ending Sept. 27, while the Dow Jones Industrial Average fell by 822 points

Options: Meandering Market Tamed by Using a Straddle or a Strangle

When you hear talk of markets trending, people think of uptrends or downtrends. However, markets often get stuck in a trading range. This is the condition where there is no

Warning! Market ‘Death Cross’ Appears

A death cross! According to Investopedia: The death cross is a technical chart pattern indicating the potential for a major selloff. The death cross appears on a chart when a

5 Best Stocks to Buy If Trump Wins the Election

If President Donald Trump wins the election on November 3, 2020, you might want to consider adding these five equities positions to your portfolio: LMT, BAC, AMZN, XLE, TWTR. Why?

5 Best Stocks to Buy If Biden Wins the Election

If Vice President Joe Biden wins the election on November 3, 2020, you might want to consider adding these five equities positions to your portfolio: XLU, TSLA, XLV, MLM, and

TGIF — Ending the Week with a Whimper

Everything is proceeding as I have foreseen. In Monday's "The Week Ahead — 200,000 Deaths Weigh Heavily on the Market," we knew the 200,000th American death would put Covid back

Even If the Overall Market Continues Lower, This Staple Could Maintain Its Upward Trend

Since peaking in early September, the main indices have all three stumbled for the last few weeks with the S&P and Nasdaq falling over 10% from their highs already. Three

tesla stock

TSLA Too Volatile? Two Option Strategies for Tesla Stock

Tesla Inc. (TSLA) is one of the most popular stocks amongst investors. Led by CEO Elon Musk the electric vehicle manufacturer has disrupted the transportation industry, bringing hype to a

pot stock

Pot Stock ‘Blood in the Streets’ Buy Signal Is Here

The cannabis market has been a volatile space in recent years. A wave in legalization, particularly in Canada but also through parts of the United States, led to significant growth