Hedge Funds are BAITING Reddit Traders | What you MUST Know

hey everyone me kevin here paul tudor

jones a hedge fund manager a hedgie

is baiting reddit investors and retail

investors into potentially

the next big short now in order to

believe in his next big shore you'll

have to pick a big

side of the inflation trade but let's

take a listen to how he baits us

and how he says hey maybe you'd consider

investing over here

let's take a listen to this and i'll

share some commentary as well let's go

let's listen where does he say we should

go

if you uh certainly the impact models

that we run

would i would argue that gser or bcom

would double or triple so you've got

if i just look at where asset managers

are 60 40 types

the one thing that they should be

invested in they're not

invested in probably because they're

hearing these assurances

that inflation's transitory so you've

got this massive short

really in the commodity complex

a massive short there so that makes me

think that um and i look at

the balances in a variety of commodities

and they're all so razor thin

they're all so razor thin and this is

just what happens if institutional money

would get to where they should be given

the level of real rates

what happens if the reddit crowd ever

gets into commodities

god forbid if the bullies the financial

markets

ever were to take it on for instance

like retail did back in the 70s

explain what you mean by that okay

i'm gonna he doesn't give a very good

explanation here but

uh i'm gonna i'm gonna break it down so

what

i'm gonna go backwards he just said for

example like what retail did in the 70s

he's basically trying to compare to

hyperinflation in the 70s

and where does he think that

hyperinflation is going to be in

commodities he thinks that commodities

are going to explode

specifically gs ci which is an

index on commodities and b com which is

another index on commodities

he suggests that these are so short that

they just can't help but explode

especially if the bullies come in which

he refers to as the retail traders and

reddit traders and then says that these

indices could

double or triple right now gsci for

example is about

12 short as of june 11th about three

days ago

now this is an interesting carrot that

he's dangling because

he's hitting at a very sort of sore spot

for a lot of us

about 45 percent of us based on a

twitter survey that he did follow me on

twitter i really kevin

about 40 45 of us believe

excuse me that inflation is going to be

more than two and a half percent a year

from now

about 55 of us believe that it will be

less than two and a half percent

a year from now and paul tudor jones is

taking

this particular fed open market

committee meeting

which happens tuesday and wednesday

followed by jerome powell talking at 2

30 on wednesday eastern time

he's taking that and calling it a

catalyst point

he wants to see drum powell saying we're

going to taper sooner and we're going to

raise rates sooner

but we as the audience here we kind of

know

that the fed is not going to do that the

fed is going to stay on their course

and in other parts of his interview paul

tudor jones says if the fed is

nonchalant about these massive increases

in cpi that we've had in the last two

meetings

which we know a lot of this has to do

with base effects

comparing to last year's hole we know a

lot of this has to do with transitory

items of inflation such as airline

travel

tickets going up seven percent or cars

going up 7.6

whereas and these are clearly transitory

whereas things that are non-transitory

things like

services things that last when the

pricing goes up maintenance

medical these things are actually

staying low

we realize these are some of the

differences when we actually look at the

cpi data we talked about those in the

cpi videos we've done

so we won't re-talk about those here but

when we break it apart we're like well

and is it really fair to call this week

a massive

catalyst point i don't know paul tudor

jones thinks the answer is yes

and if you believe in what paul tudor

jones is

saying then you should probably invest

in something that would give you a lot

of exposure

to something very much like a michael

bury portfolio

michael bury's portfolio is basically

something that would

short a high growth expectations

that would be a lot of cash flow in the

future not a lot of cash flow now

tesla's the perfect candidate to short

for high inflation you've got

treasury bonds obviously if there's high

inflation interest rates will go up

treasury bonds today will be next to

worthless then you've got

low priced tech which is creating a lot

of cash flow now

and then you have other companies here

which are mix of telecommunications

industrials uh some recovery we've got

like see

cvs in here we've got real estate

investment trusts in here

a lot of different options uh in in the

portfolio here

these are some things that you might

invest in if you're thinking

man maybe paul tutor jones is right in

addition to maybe that commodities index

so now you have to separate this and you

have to ask yourself

where do i stand the most important

thing in my opinion for you to do

beyond of course going to the link down

below and taking advantage of that 40

off coupon code and joining the amazing

programs on building your wealth whether

that's through making youtube videos or

stocks on psychology money or real

estate investing or you name it

most important thing in my opinion for

you to do is pick

pick some investment strategy write it

down and stick with it

you've really got three choices you've

got what i'm doing

which is i think by september october

inflation rotates down

when inflation rotates down and we might

see a little bit of a short-term panic

in

some cryptos that's going to be a

perfect buying opportunity for me

hey we had a buying opportunity recently

as well i don't know that we're going to

break 31k again on crypto but i'm

keeping an eye on exactly that 31

level on bitcoin we've triple bounced

off of that so we've been pretty strong

and i'm very bullish on crypto going

into 2022.

we've got uh tech and consumer

discretionaries the teslas the etsy's

the palantirs the snowflakes

uh these companies that i'm very very

heavily invested in and i believe i can

balance those off

using actually michael bury stock here

with google

so that's sort of my portfolio along

with investing in innovative companies

like enphase and of course the evs and

so on

so you've got this mixed in you've also

got some portion of momentum

momentum is a smaller portion of my

portfolio but it's something that i have

fun trading with so i like that

then you've got the other option which

is you you literally do the opposite of

all that

with the exception of maybe carrying

google over do a michael bury style

inflation portfolio

and and expect basically high inflation

or you do something kind of in the

middle where you're like well i'm going

to have a little mix of everything maybe

you have index

funds you expose yourself to multiple

different assets so you can ride out

whatever happens that way you don't lose

big in either of the scenarios but you

lose that potential of winning big in

either scenario so that is where you

want to be

the worst thing you want to do is be a

floater that's like oh well

well tech just went up i'm going to go

invest over there fomo bad bad

bad bad oh well well those recoveries or

industrials just went up i'm going to go

invest over there no no

you want to be in something before it

goes up very important okay

so pick a strategy stick with it now

what i do think is really brilliant

about what paul tudor jones is doing

here

is he is baiting reddit traders he is

literally suggesting hey reddit traders

look there's a massive amount of short

interest here

it could double and triple all you have

to do is take advantage of this sector

it's kind of funny it's kind of a

brilliant strategy

to see a hedge fund manager basically

try to enroll

reddit traders into his strategy now i

think reddit is going to see right

through that

but it's kind of an interesting strategy

anyway check out the links down below

thank you so much for watching

[Music]

you