Hedge fund manager Paul Tudor Jones told CNBC on Thursday the market could be higher by June despite what he sees as a turbulent month ahead.
“My guess is one of the reasons the market’s up right now is because of all the month-end rebalancing. The market’s front-running, it sees the fact that there are going to be a lot of equities to buy,” Jones told CNBC’s “Squawk Box.” “That’s one reason my guess is we’ll stay firm into month-end and then we’ll be challenged in April,” as the market digests a peak level of coronavirus cases.
“I think that could bring us to a retest, it might even bring us to a fractional new low. But I do think the stock market’s going to find a bottom once we get a peak in the epidemic curve, [there’s] not a doubt in my mind the stock market will rally,” he continued. “My guess is we’ll be higher three or four months from now, five months from now, than lower than where we are right now.”
The comments by the billionaire founder of Tudor Investment and Just Capital came amid one of the most violent Wall Street sell-offs in recent years with the Dow Jones Industrial Average and S&P 500 down at least 26% from their respective all-time highs hit last month. Minutes after the interview, the Labor Department reported a surge in weekly jobless claims to 3.28 million, shattering the all-time mark of 695,000 in October 1982.
Investors have punished riskier securities like stocks as a growing number of economists warn that COVID-19, and efforts to contain its…
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