Paul Tudor Jones warns 2027 will be a really challenging year for stocks, plans to go short

Billionaire hedge fund manager Paul Tudor Jones told CNBC's "Squawk Box" on Tuesday that 2027 is poised to be a deeply difficult year for the stock market, driven by a surge in equity supply, a deteriorating fiscal backdrop, and the unwinding of forces that have fueled a four-year bull run. Jones, founder and chief investment officer of Tudor Investment, said he intends to be short U.S. stocks for the duration of 2027, declaring there is "little value" remaining in the market.

Jones pointed to a wave of major tech IPOs and secondary offerings as a primary threat, singling out upcoming deals from Anthropic and OpenAI, alongside a recently completed SpaceX offering. He argued that corporate buybacks and mergers and acquisitions have been compressing equity supply and supporting prices throughout the current bull market, but that dynamic is now reversing as companies tap capital markets to fund the artificial intelligence buildout. The result, he said, will be the most negative equity flow picture for U.S. stocks since around 2002.

Jones drew explicit parallels to 1999, roughly a year before the dot-com bubble burst, noting the bifurcation between AI-driven winners and the rest of the market. He also flagged the ballooning U.S. fiscal deficit as an unresolved threat, arguing that markets, not politicians, will ultimately force a reckoning similar to the 2008 financial crisis and the TARP intervention. He also sees oil prices rising by $20 to $25 from current levels.