A billionaire hedge fund manager claims the fiscal health of the US is the worst "since World War 2" following escalating geopolitical tensions.
Paul Tudor Jones explained that it is "extremely tough" to be an investor in risk assets after Hamas launched its attack on Israel and interest rates surged across the US.
The investor said that the Hamas-Israel war has caused a challenging geopolitical environment.
He added that rapidly growing interest rates has also caused America's fiscal position to deteriorate.
The investor said that the Hamas-Israel war has caused a challenging geopolitical environment
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“It’s a really challenging time to want to be an equity investor and in U.S. stocks right now,” Jones told CNBC.
“You’ve got the geopolitical uncertainty... the United States is probably in its weakest fiscal position since certainly World War II with debt-to-GDP at 122 per cent.”
He added: “As interest costs go up in the United States, you get in this vicious circle, where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position."
Jones founded Tudor Investment after rising to fame following his prediction and huge profits from the 1987 stock market crash.
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He explained that he will wait for a resolution and evaluate the Hamas-Israel war before jumping back into risk assets.
He said: “From a personal standpoint, would I be investing in risk assets now and stocks until I saw what the resolution was with Israel, Iran?”
“Israel is going to respond in some way, shape or form. The determination of whether Iran was actually responsible is enormous because again, it has the possibility to really escalate into something terrible.”
Texas Senator Ted Cruz blasted the president over his handling of the crisis as he spoke on the horrors of the Israel-Hamas war, claiming the Potus failed to enforce American sanctions on oil sales to Iran.
The comments come as Biden finally waded into the Israeli war after three days of public silence on the conflict.
Biden, 80, delivered a poignant public address on Tuesday, condemning the “unadulterated evil” of Hamas’ terrorist attacks which have left hundreds dead in the region, including 14 Americans.
