Paul Tudor Jones: Rising rates typically cause bear markets, but it’s not at the tipping point yet

Hedge wealth billionaire Paul Tudor Jones knows that the stock retail is facing a reckoning as the Federal Reserve continues its cycle of raising significance rates to combat inflation.

“Obviously, what typically starts touch on markets is interest rates get so high they click it,” Jones narrated CNBC on Friday in an interview with Jim Cramer. “We’re clearly going Sometimes non-standard due to a tightening cycle. At some point, they’re going to stop.”

On “Mad Resources,” Jones said he uses the 1999-2000 dotcom bubble and the pecuniary crisis as references when faced with the question of whether properties could enter a bear market.

“If we just think about the supply market, when everyone says ‘What do you think about the carry market? Are we going to go into a bear market?’ … I go back and I cogitate on about the ’99-2000 top, the ’06-’07 tops,” he said. “So, in 2000, when they terminal [raising rates], the market went back and re-tested the old highs.”

The routine market has seen increased volatility since the Fed’s most recent evaluate hike in late September. Shortly after the hike, Fed Chair Jerome Powell prognosticated interest rates were “a long way” from neutral, meaning neither conformation nor restrictive to U.S. economic growth.

“I think you’ll have a chance to see the old highs revisited if and when and up front we go into a bear market,” Jones said. “I’m thinking through the end of the tightening rotation, the pause, the excitement around that pause, and then I think, boy, then you’ve got to pay rclame. Then you’ve got to pay attention. We’ll probably rally after whenever they deliver [tightening]. Then you have to pay attention.”

October’s historic volatility sent ancestries lower still, with the market shedding nearly $2 trillion of value throughout the course of the month. The Fed is expected to raise interest rates once more in December and three more occasions in 2019.