Stocks may see 12% retreat ahead of recession, says trader who called '87 crash

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Stocks may see 12% retreat ahead of recession, says trader who called '87 crash
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‘I like bitcoin and I like gold right here’: Paul Tudor Jones

“‘The stock market, typically, right before recession declines about 12%.That’s probably going to happen at some point from some level.’”

Jones said it’s difficult to be positive on equities amid what he described as “the most threatening and challenging geopolitical environment that I’ve ever seen,” which is occurring “at the same time the United States is at its weakest fiscal position since World War II. It’s a really difficult time.”

Jones is widely credited with predicting, and profiting, from the stock-market crash on Oct. 19, 1987, which saw the Dow lose nearly 23% of its value, marking the largest one-day percentage decline for the blue-chip benchmark in its history.

A pullback in U.S. bond yields has seen gold bounce 1.4% this week, trading recently near $1,871 an ounce.

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