Ray Lopez

Paul Tudor Jones: Gold's Undervalued and Bonds Are a Curve Flattener Play

J. P. Tudor is a good man. He lives in Zimbabwe part of the year if memory serves. But if you look at his record (and taking nothing away from it), you'll notice he does better in bull markets than bear. This means he essentially is long on equities, possibly with leverage (he lost money for the first time ever last year, meaning he was in the same stuff as everybody else, albeit down -4% rather than -15% like most hedge funds). Also note he likes gold miners rather than gold itself, meaning once again he enjoys using leverage.

Long live JPT! I wish I was one of his clients. I also favor gold but realistically gold should level out once the bull market takes off again. However, due to government debt, I am betting it levels out at $2000 USD/oz rather than $1k.