Billionaire hedge fund manager Paul Tudor Jones believes the stage is set for a massive stock price surge before the bull market peaks. Jones, who made a fortune predicting and profiting from the 1987 stock market crash, warns that today’s market shares similarities with the dot-com bubble in 1999.
The tech-heavy Nasdaq Composite has risen 55% since its April low to record highs. The rally is driven by megacap tech giants investing heavily in AI and being valued for their potential in this emerging field. However, Jones notes that the current situation is different from 1999 due to US fiscal and monetary policy.
The US is currently running a 6% budget deficit, whereas in 1999, there was a surplus of $99,000. Jones sees this combination as a rare occurrence since the post-war period. He emphasizes that late-stage bull markets are characterized by a tension between capturing outsized gains and facing a painful correction.
Jones isn’t predicting an immediate downturn but believes the bull market still has room to run before it reaches its final phase. To capitalize on the rally, he plans to invest in gold, cryptocurrencies, and Nasdaq tech stocks until the end of the year.
Source: https://www.cnbc.com/2025/10/06/paul-tudor-jones-says-ingredients-are-in-place-for-massive-rally-before-a-blow-off-top-to-bull-market.html