Billionaire hedge fund manager Paul Tudor Jones said Tuesday he is long gold and Bitcoin because he expects inflation to continue no matter who is in the White House. Things are starting to look set for Trump's victory. “I think all roads lead to inflation,” Jones said Tuesday on CNBC's “Squawk Box.” “I'm long gold. I'm long Bitcoin. I'm long commodities because I think they're wildly undervalued. Most young people find their inflation hedges via the Nasdaq. The founder of Tudor Investments and the Robin Hood Foundation predicts that former President Donald Trump could win the 2024 US presidential election. He said he has started increasing his investments in inflation trading. “Certainly, I moved in that direction,” Jones said, referring to the changes he made to his portfolio. The longtime investor, who became famous for predicting the 1987 stock market crash and profiting from it, is concerned about the trajectory of the U.S. debt, which is expected to rise further than the Congressional Budget Office currently predicts. He said he expected it to overheat. @GC.1 Year-to-date Mountain Gold, year-to-date The CBO projects that the budget deficit will reach $2.8 trillion by 2034, up from $1.8 trillion in fiscal year 2024. It expects debt to rise to 122% of GDP in 2034, compared to the current level of 100. % of GDP. He worries that the tax cuts and spending proposed by both candidates will be inflationary and unacceptable in the Treasury market, causing interest rates to skyrocket. The last time the 10-year U.S. Treasury yield exceeded 4.2% was Tuesday. Interest rates have been rising even after the Fed cut rates a month ago. “Obviously I'm not going to hold bonds, I'm going to short the back end of bonds,” Jones said. “Because it's completely the wrong price.” Bond prices and yields move in opposite directions. The investor said that like many civilizations that are too indebted, the United States will eventually try to get out of debt. Gold hit a week-high of $2,740.37 on Monday and was last trading around that level. This year, it rose 32%. Bitcoin is up 57% this year, according to Coin Metrics.
