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Paul Tudor Jones calls bitcoin the ‘best inflation hedge,’ warns of overvalued stocks
It will be “really hard to make money” in stocks over the next decade, said the billionaire investor, noting that the S&P 500’s valuation reminds him of the 2000 dot-com bubble.
Apr 28, 2026, 7:56 p.m.
What to know:
- Paul Tudor Jones said bitcoin, with its fixed supply, is a stronger hedge against inflation than gold, especially during periods of heavy monetary and fiscal stimulus.
- U.S. equities look overvalued, Jones warned, arguing that current S&P 500 valuations imply a negative 10-year forward return.
- Stock market capitalization relative to GDP is near historic extremes like the dotcom bubble, he noted, raising the risk that a major market correction could worsen the federal budget deficit and roil the bond market through collapsing capital-gains tax revenues.
Jones framed bitcoin’s appeal through the lens of past market cycles. During periods of aggressive monetary and fiscal stimulus, such as after the March 2020 pandemic crash, he said inflation trades tend to emerge as central banks inject liquidity into the system.
“When you saw all the interventions… you just knew that the inflation trades were going to take off,” he said, adding that bitcoin was the most compelling opportunity at the time.
His bullish view on bitcoin contrasts with a more cautious stance on equities. Jones warned that stock markets are stretched, with valuations that historically point to weak future returns.
