Paul Tudor Jones Recommends Bitcoin, Gold, and Stocks to Hedge Inflation

Billionaire hedge fund manager Paul Tudor Jones reaffirmed his bullish stance on Bitcoin during a recent appearance on Bloomberg. He emphasized that a volatility-adjusted portfolio consisting of Bitcoin, gold, and stocks is the optimal strategy for investors aiming to hedge against inflation.

"That's probably your best portfolio to hedge against inflation," Jones said on Bloomberg Open Interest. He maintained his long-standing recommendation of allocating 1–2% of a portfolio to Bitcoin, underlining the cryptocurrency's increasing relevance in today’s macroeconomic environment.

Jones explained that current monetary policy decisions, especially those aimed at escaping what he calls a “debt trap,” are likely to come at the expense of the American consumer. “If I’m a policymaker, I’m going to run really low real rates, keep inflation hot, and tax the consumer to get out of the debt trap,” he warned.

As one of the first Wall Street titans to publicly embrace Bitcoin in 2020, Jones has consistently supported the digital asset, particularly during periods of aggressive quantitative easing. He has frequently expressed confidence in Bitcoin and gold as long-term stores of value, noting their importance in preserving purchasing power amid fiscal uncertainty. In October last year, he confirmed he remained long on both assets.

During the same interview, Jones also shared insights on artificial intelligence, calling it “the most disruptive technology in the history of mankind.” While he acknowledged AI’s transformative power, he also cautioned that it poses significant risks, including the potential to displace large segments of the global workforce. Last month, he warned that AI could threaten up to half of humanity.

With ongoing economic uncertainty and AI innovation accelerating, Jones’ portfolio advice offers a compelling strategy for investors seeking stability and protection against inflationary pressures.