Tudor Jones says this will be the ‘Second Depression’ if we remain in lockdown in a year

Investing News

Paul Tudor Jones speaking at the World Economic Forum in Davos, Switzerland, January 21, 2020.

Adam Galica | CNBC

Billionaire hedge fund investor Paul Tudor Jones said Monday the economy would be in a “Second Depression” if the coronavirus pandemic doesn’t get contained for another year.

“If a year from now, we are still in the same situation, we would be called a Second Depression,” Jones said on CNBC’s Squawk Box on Monday. “Just depends on whether unfortunately this goes to a year with this kind of a lockdown, another year with this kind of a lockdown.”

With tears in his eyes, Jones said he wants to be able to tell his grandchildren, “when they ask me what did I do during the second depression, I would look them in the eye and I want to tell them I did more than I thought I could do.”

The coronavirus has infected more than 1.3 million people in the U.S. as of Monday, with at least 79,528 deaths in the country, according to data from Johns Hopkins University.

“I think this part of the bounce was easy to forecast, I think what happens from here again depends a lot on Covid stuff. There’ll be a shift in focus from liquidity issues somewhere down the line to solvency issues.If we don’t find a vaccine or a cure, if we don’t find a much better way of testing at scale … then I think the market’s going to have a much more difficult time,” Jones said.

Jones is the founder and chief executive officer at Tudor Investment Corp.

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