Billionaire hedge fund manager Paul Tutter-Jones has put inflationary pressures on the US central bank’s Federal Reserve.
Jones appeared on CNBC’s ‘Squawk Box’ on the 14th (local time) and said that he is closely watching what the Federal Open Market Committee (FOMC) will make in two days at the Fed’s monetary policy meeting. In a situation where consumer prices are soaring, the pressure is not to continuously treat this as temporary inflation.
“If the FOMC continues to ignore and continue to ignore the very realistic (inflation) figures, I would think of it as a ‘green light’ that implicitly allows all-in on all inflation deals,” he said in the broadcast.
If the Fed says ‘we’re on the road and everything’s fine’, Jones said he would focus on trading inflation. “I’ll probably buy commodities, cryptocurrencies and gold,” he added. Jones also reaffirmed his preference for Bitcoin in terms of ‘portfolio diversification’ and ‘property storage’.
Regarding asset allocation, he said, “I want 5% gold, 5% bitcoin, 5% cash and 5% commodities, but I don’t know where to put the remaining 80% until we see what the Fed will do at FOMC.” said.
However, Jones predicted that if the tone of the FOMC on the 16th changes from dovish (accommodative) to hawkish (austerity), the market could become uneasy. “If the Fed changes direction, there will be an austerity seizure,” he added. “The bond market will sell off and stocks will go through a correction. That doesn’t mean it’s over.”
