Billionaire investor Paul Tudor Jones believes the stock market has more room to run to the upside, but warns that the rally will ultimately end in one of the most severe corrections in modern memory.
In a new CNBC interview, Tudor Jones says the current AI boom is reminiscent of the PC-driven productivity miracle during the late 70s and early 80s.
“I would say 1977 when Apple dropped theirs was kind of like ChatGPT, but it wasn’t until Microsoft brought their PC in 81 when you got widespread commercial adoption. ChatGPT in 22 — I think Claude Code in January of this year would be the equivalent of when Microsoft came out in 81. And then 95, when we finally allowed the internet to be used for commercial purposes. Those were both the beginning of productivity miracles that lasted four to five and a half years.”
According to Tudor Jones, we are now at the tail end of the bull market, specifically referencing 1999, when equities witnessed a blow-off top before igniting a severe correction.
“I’d say 50 or 60%. If I had to pick a period, we’ve got another year or two to run.”
The billionaire investor warns that it is within the realm of possibility for the market to see a massive downturn after the rally is exhausted.
“Just imagine the stock market went up another 40%. The stock market GDP is going to probably be, good lord, 300, 350%, something on a 17-vol instrument. You just know that it’ll be one of those breathtaking corrections.”
As of Friday’s close, the S&P 500 is trading at a new all-time high of 7,398.
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