Billionaire hedge fund manager can’t imagine worse environment for investors

A billionaire hedge fund manager said Tuesday he cannot imagine an environment worse for investors amid rising interest rates. 

During an appearance on CNBC’s “Squawk Box,” Tudor Investment Co. founder and chief investment officer Paul Tudor Jones said investors are in “uncharted territory.”

The Federal Reserve is expected to announce a 0.5 percentage point increase to its baseline interest rate range, the latest in a series of planned rate hikes meant to cool inflation.

While the Fed is aiming to reduce inflation without interrupting economic growth, a growing number of economists fear the bank will not be able to do so without causing a recession.

Asked if the country is heading into recession, Jones, who previously predicted the stock market crash of 1987, replied that markets were showing some worrying symptoms.

“You can’t think of a worse environment than where we are right now for financial assets,” Jones said. “Clearly you don’t want to own bonds and stocks.”

Jones advised that investors should start prioritizing capital preservation to weather the challenging financial climate.

“I think we’re in one of those very difficult periods where simple capital preservation is I think the most important thing we can strive for,” Jones said. “I don’t know if it’s going to be one of those periods where you’re actually trying to make money.”