Paul Tudor Jones Warns S&P 500 Faces Downside at Record Highs
Hedge-fund legend Paul Tudor Jones cautions that the S&P 500's record highs and sky-high valuations make passive 'buy and hold' strategies risky. In podcast comments updated twice today, he cites the Buffett indicator at 252%—well above 170% in 2000 and 65% in 1929—warning a mean reversion could trigger a one-third decline. Jones highlights reduced corporate buybacks (previously ~3% of market cap), a wave of mega-IPOs like SpaceX and OpenAI adding supply, and private equity's rise to 16% of portfolios from 7% in 2008. He urges selective opportunities in Japan and yen over broad S&P exposure.