Paul Tudor Jones sees boom and going for gold

T

turkeyneck

Those who doubt an economic recovery is under way may want to check out the latest investor letter from Paul Tudor Jones. The legendary hedge fund manager of Tudor Investment sees a wave of money flowing into the markets, pushing up stocks, commodities and other assets in what he terms “The Great Liquidity Race.”

Winning the race, Mr. Jones posits, will be gold, emerging-market equities denominated in local currencies and commodity-related stocks. “I have never been a gold bug,” he says in the letter. “It is just an asset that, like everything else in life, has its time and place. And that time is now.”

http://dealbook.blogs.nytimes.com/2009/10/28/seeing-next-boom-tudor-goes-for-the-gold/
 
I agree with the hyper-inflation printing press induced rally thesis. So far it has legs.

I don't know about Gold though.
Although I can understand the rational, it could easily drop off a cliff just as well.
Reminds me a bit of GS infamous Oil Call right around the top.
 
Quote from turkeyneck:

Those who doubt an economic recovery is under way may want to check out the latest investor letter from Paul Tudor Jones. The legendary hedge fund manager of Tudor Investment sees a wave of money flowing into the markets, pushing up stocks, commodities and other assets in what he terms “The Great Liquidity Race.”

Winning the race, Mr. Jones posits, will be gold, emerging-market equities denominated in local currencies and commodity-related stocks. “I have never been a gold bug,” he says in the letter. “It is just an asset that, like everything else in life, has its time and place. And that time is now.”

http://dealbook.blogs.nytimes.com/2009/10/28/seeing-next-boom-tudor-goes-for-the-gold/
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Here's the direct link for the letter.

http://www.scribd.com/doc/21753600/Tudor-Third-Quarter-Letter

Lot of good info on gold market fundamentals in there.
 
Didn't he come out with a statement in Sept. saying prices were likely to fall? Two months later he says this......... or is he just getting on the bandwagon?
 
Quote from turkeyneck:

Those who doubt an economic recovery is under way may want to check out the latest investor letter from Paul Tudor Jones. The legendary hedge fund manager of Tudor Investment sees a wave of money flowing into the markets, pushing up stocks, commodities and other assets in what he terms “The Great Liquidity Race.”

Winning the race, Mr. Jones posits, will be gold, emerging-market equities denominated in local currencies and commodity-related stocks. “I have never been a gold bug,” he says in the letter. “It is just an asset that, like everything else in life, has its time and place. And that time is now.”
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He seems a little late to the party for gold. As to the other stuff, mostly just a guess. If it were that simple, then the market would pretty much price in the expectations. The market has a habit of being ahead of almost everyone else. Market timers have a habit of constantly being wrong.

The problem with gold is, it has a decades long history of being all set to double or triple in price, according to the doomsters or gold bugs.

If it doesn't, people will say he is right. If it stays where it is or drops, no one will remember his wrong prognostication.

And WHEN will it do this? next month? Year? Decade? Pure inflation will eventually drive it up anyway given enough time. After all, a 1969 dollar is probably worth 400% or more now than it was then. Doesn't mean much if gold went up 400% over that time, just that it held its value but yielded no growth or dividends.
 
Big question mark is how much central bank monetization we are going to get here and abroad. They are betting it will continue, hence higher prices.
 
Quote from cleveland45:

Didn't he come out with a statement in Sept. saying prices were likely to fall? Two months later he says this......... or is he just getting on the bandwagon?
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He did.

I guess he changed his view.
 
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