Paul Tudor Jones Warns Stock Valuations Could Mean Weak Returns For A Decade

Investor Paul Tudor Jones, who made a well-known profit off the 1987 stock market crash by drawing parallels to conditions before 1929, is now warning that today's high valuations could translate into weak long-term returns, according to TheStreet.

Jones said on Patrick O'Shaughnessy's "Invest Like the Best" podcast in April that buying the S&P 500 at current valuations could produce low or even negative forward returns for long-term investors. He pointed to the U.S. stock market's value sitting at around 252% of gross domestic product, a level he said stands well above prior market peaks.

A Bank of America report dated September 14 reached a similar conclusion, with the bank saying several of its valuation metrics now point to negative S&P 500 returns over the next 10 years, according to TheStreet. Neither Jones nor Bank of America is forecasting an imminent crash; the concern is more about investors paying high prices now and having little to show for it years down the line.