Paul Tudor Jones Warns of a Terrifying Stock Market Bubble in 2017

buffet indicator paul tudor jones april 2017 corporate equities to gdp.png

Hedge fund legend Paul Tudor Jones says this ‘terrifying’ chart should freak out the Fed
Tudor Jones was referring to a chart of the stock market’s value versus the economy, showing valuations not seen since the dot-com bubble of 2000.
The comments came during a closed-door meeting with Goldman Sachs, Bloomberg News reported

The legendary macro trader says that years of low interest rates have bloated stock valuations to a level not seen since 2000, right before the Nasdaq tumbled 75 percent over two-plus years. That measure — the value of the stock market relative to the size of the economy — should be “terrifying” to a central banker, Jones said earlier this month at a closed-door Goldman Sachs Asset Management conference, according to people who heard him.

Jones is voicing what many hedge fund and other money managers are privately warning investors: Stocks are trading at unsustainable levels. A few traders are more explicit, predicting a sizable market tumble by the end of the year.

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