Billionaire investor Paul Tudor Jones believes the best defense against inflation is a portfolio composed of Bitcoin, gold, and equities.
In an interview with Bloomberg, the founder of Tudor Investment Corp. described this mix, adjusted for volatility, as the ideal hedge in what he sees as a persistently inflationary era.
Jones said policymakers will likely continue to run âhotâ economies by keeping real interest rates below inflation to manage mounting debt.
âIâm going to run really low real rates. I am going to have inflation running hot and Iâm going to tax the American consumer to get out of my debt trap,â he said, describing what he believes is the U.S. strategy.
He also warned that such policies only work âuntil the population throws you out,â referencing similar dynamics in Japan. In that environment, Jones explained, assets like Bitcoin (BTC) and gold become critical as stores of value.
While he previously advocated for a 1â2% Bitcoin allocation, Jones now emphasizes the broader case for owning the digital asset, though he declined to cite a specific percentage.Â
Given Bitcoinâs higher volatility compared to gold, Jones recommended adjusting allocations accordingly. âThatâs probably your best portfolio to fight inflation,â he said.
Jones also speculated that, if re-elected, President Trump would appoint an âuber-dovishâ Federal Reserve chair after Jerome Powellâs term ends, potentially accelerating these inflationary dynamics.
His comments followed the release of May CPI data, which showed inflation at 2.4% year-over-year, slightly below expectations.