Billionaire foresaw the stock market crash in 1987. Now he warns about the terrifying moments

(Obi.no/Dagbladet): - From a market perspective it's going to be very interesting. There will probably be some very scary moments in the markets.

the Words belong to the american billionaire Paul Tudor Jones. He is manager of the hedgefondet Tudor Investment, which is around seven billion dollars, or 59 billion kroner.

When he on Thursday spoke at the Greenwich Economic Forum in Connecticut, USA, was his message that both bonds and stocks are overpriced, writes Marketwatch.

See varsellamper flash

It is all the more reason to listen to what Jones says:

Billionaire is known to have predicted major macroeconomic events in the past. His biggest promise he earned big money on when he foresaw the stock market crash in 1987, following the Marketwatch.

In just one day fell the Dow Jones index 23 percent, which is the largest stock market decline in the percent for the index ever.

Now he sees the telltale flash again.

This is going to be a very challenging time for political decision-makers. Global debt in relation to GDP is at a new all-time high, " says Jones.

- Greater risk

He will have the support of Harald Magnus Andreassen, chief economist at Sparebank 1 Markets.

I think he's right in that there is risk, and greater risk than in many years, " says Andreassen to Dagbladet.

He don't think that it is so strange, after a ten-year, global cyclical upturn and unemployment in rich countries has not been lower since 1980.

Then the stock prices high, " says Andreassen.

RISK: - I think he's right in that there is risk, and greater risk than in many years, " says chief economist Harald Magnus Andreassen in Sparebank 1 Markets. Photo: Lise Åserud / NTB scanpix Show more

He will, however, gladly noticing nuances the picture:

We tend to see more signs of it going bad before it went in the stock market.

Among the things that still count positively in the global economy, is that households have paid down a lot of debt - although Norway is an exception, along with Sweden, Canada and Australia.

Handelskrigene as president Trump has pulled in time draws in the negative direction.

- It is not currently debilitating, but it creates uncertainty, " says Andreassen.

within two years

He believes in the long run it will get a larger international case on the stock exchanges, and that it also will affect the Oslo stock Exchange.

When we get a global backlash, is always the Oslo stock Exchange very exposed, " says Andreassen.

He, nevertheless, believe not that tilbakslaget will come fully yet, but will be surprised if it doesn't happen in the course of two years.

- Oslo Børs are animals, but tend to be more expensive before it goes properly wrong, " says Andreassen.

If there comes a børsfall already now, he believes it will be less than 50 per cent.

How will the man in the street notice it?

- You can take it aksjefondet you have, and divide it in two. But in order to achieve a halving from the current levels, then it must be quite unmanageable in the global economy, says Harald Magnus Andreassen.

Fears of overheating

Because Paul Tudor Jones is waiting troubled times, due to increased interest rates and the Trump administration's tax cuts, he has stresstestet portfolio.

At the Greenwich Economic Forum Thursday said Tudor that Trump administration's skattelettelse from the end of last year could harm investors in the long term.

He meant it will make that market overoppheter, and that it once again forces the central bank to increase the key rate.

- It is clear that the tax cuts and the economic activity it has caused has led to that the Fed has increased interest rates, said Jones.

- Skattelettelsen was promised before the central bank started to increase interest rates, and before Trump said he would be president. The interest rate was zero. Do you really think that we would have had such a skattelettelse if we knew where interest rates would make of themselves? I don't think so, continued Jones.

The u.s. central bank has raised the key rate three times in the year, and it is expected to be a termination before the end of the year. To increase the interest rate over a short time have at times worried investors since it makes it more expensive for businesses to borrow money, as well as finance the buy-back and expansion.

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