Paul Tudor Jones: I Blame Our Economic Malaise On Manipulation Of The Yuan And The Loss Of U.S. Labor To China

"The root cause of the unemployment woes is quite obvious. In the United States alone, in the last two decades, nearly six million jobs in manufacturing have been lost overseas. This equates to nearly four percentage points of the current 9.7% US unemployment rate. As importantly, the migration of these jobs contributed to the most unsustainable economic imbalance in the world today—China’s persistent bilateral trade surplus with the United States. During the last decade, China accumulated almost $1.4 trillion of US debt and at least $2.3 trillion in global assets. These figures could grow to $3.8 trillion and $7 trillion, respectively, over the next decade if the current renminbi/US dollar (RMB/USD) exchange rate continues to be artificially suppressed from appreciating."

Paul Tudor Jones

Paul Tudor Jones: The Market Is Like 1999

"Our current situation is highly reminiscent of 1999, when the fear of a Y2K computer meltdown led central banks to deliver global liquidity pulses in an effort to cushion any possible negative fallout from the failure of systems and the Internet. Once again, policy leaders symptomatically attacked a structural deficiency. Most of that excess liquidity ended up in a very narrow list of approximately 100 NASDAQ stocks, as $20B a month poured into margin accounts to purchase technology stocks.  Between October 1999 and March 2000, the NASDAQ nearly doubled.

With the Federal Reserve Board about the embark upon a LSAP program of over $1 trillion dollars, it is certainly important to understand exactly where much of this liquidity will roost. And the similarities between 1999 and today bear heeding."

Paul Tudor Jones

Paul Tudor Jones: Crude, Stocks And Bonds Are Related

"Currency, crude, stocks, and bonds; they're all interrelated. The whole world is simply a big flow chart for capital." 

Paul Tudor Jones

Paul Tudor Jones: Don't Play Earnings

"I don't risk significant amounts of money in front of key reports, since that is gambling, not trading."

Paul Tudor Jones

Paul Tudor Jones: My Current Top 5 Stocks

S&P 500 Spyders (SPY)

iShares MSCI Emerging Markets Index (EEM)

Citigroup (C)

GAIN Capital Holdings (GCAP)

AT&T (T)

Paul Tudor Jones: Don't Rationalize

"I see the younger generation hampered by the need to understand and rationalize why something should go up or down. Usually, by the time that becomes self-evident, the move is already over."

Paul Tudor Jones

Paul Tudor Jones: Everything Happens For A Reason

Paul Tudor Jones - Failure Speech June 2009

Paul Tudor Jones On The 1987 Crash

"The one on a percentage basis that's been the most profitable for me was the crash of 1987. There was a tremendous embedded derivatives accident waiting to happen in the crash of '87 because there was something in the market that time called portfolio insurance that essentially meant that when stocks started to go down it was going to create more selling because the people who had written these derivatives would be forced to sell on every down-tick. So it was a situation where you knew that if you ever got to a point where the market started to go down that the selling would actually cascade instead of dry up because of the measure of these derivative instruments that had been written. And in the crash of '87 you had an overvalued market and you also finally had a situation where every down-tick would create more selling and I think I understood the dynamics of that. The crash was something that was imminently forecastable to somebody that understood the measure of derivatives and how large they had grown in such a relatively short period of time and the impact that it would have on a relatively unknowing and na'e market. And the same exact thing happened in 1990 in Japan."

Paul Tudor Jones

Paul Tudor Jones Investment Letter

Tudor Investments Letter October2010

Paul Tudor Jones: The Secret To Successful Trading

"The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge. Because I think there are certain situations where you can absolutely understand what motivates every buyer and seller and have a pretty good picture of what's going to happen. And it just requires an enormous amount of grunt work and dedication to finding all possible bits of information.

You pick an instrument and there's whole variety of benchmarks, things that you look at when trading a particular instrument whether it's a stock or a commodity or a bond. There's a fundamental information set that you acquire with regard to each particular asset class and then you overlay a whole host of technical indicators and that's how you make a decision. It doesn't make any difference whether it's pork bellies or Yahoo. At the end of the day, it's all the same. You need to understand what factors you need to have at your disposal to develop a core competency to make a legitimate investment decision in that particular asset class. And then at the end of the day, the most important thing is how good are you at risk control. 90% of any great trader is going to be the risk control."

Paul Tudor Jones

Paul Tudor Jones: I Don't Like To Take A Lot Of Risk

"I think I am the single most conservative investor on earth in the sense that I absolutely hate losing money. My grandfather told me at a very early age that you are only worth what you can write a check for tomorrow, so the concept of having my net worth tied up in a stock a la Bill Gates, though God almighty it would be a great problem to have, it would be something that's just anathema to me and that's one reason that I've always liked the futures market so much, because you can generally get liquid and be in cash in literally the space of a few minutes. So that always appealed to me because I could always be liquid very quickly if I wanted to.

I'd say that my investment philosophy is that I don't take a lot of risk, I look for opportunities with tremendously skewed reward-risk opportunities. Don't ever let them get into your pocket - that means there's no reason to leverage substantially. There's no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum drawdown pain and maximum upside opportunities." 


Paul Tudor Jones

Paul Tudor Jones Video Before 1987 Crash

Click here for 55 minute rare video.

Paul Tudor Jones: I Make My Money At Tops And Bottoms

“I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.”

Paul Tudor Jones