Billionaire Paul Tudor Jones warns AI and IPOs could hit stocks hard in 2027. Protect your nest egg now
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Wall Street’s appetite for artificial intelligence has helped fuel a stock market boom. But billionaire investor Paul Tudor Jones is worried about what happens when the bill comes due.
“2027 is going to be really, really challenging for the stock market,” the Tudor Investment Corp. founder told CNBC’s “Squawk Box” on Oct. 13 (1).
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His concern comes down to supply and demand. As companies raise money to fund the AI buildout and big names go public, more shares will compete for investors’ dollars.
Jones expects that shift to make life harder for shareholders — and he plans to bet on falling prices.
“I’ll be short the whole year,” he said.
If you’ve benefited from rising stocks, it might be worth asking how much of your nest egg depends on the boom continuing.
More shares, more competition
For years, corporate buybacks and acquisitions have helped take shares off the market. Apple (NASDAQ: AAPL) alone repurchased 402 million shares for $89.3 billion in fiscal 2025 (2).
Acquisitions can also remove an entire company’s stock from public trading. When Microsoft (NASDAQ: MSFT) bought Activision Blizzard in 2023, it cancelled shareholders’ stock in exchange for $95 per share in cash (3).
Jones tracks those forces against the stock coming onto the market through IPOs, additional offerings and the expiration of selling restrictions. He believes that balance is becoming less favorable for investors.
SpaceX’s enormous valuation and the anticipated offerings from Anthropic and OpenAI are changing the calculation, he said. More companies seeking investor money could make it harder to sustain high stock prices.
An IPO also isn’t necessarily the end of the selling. Employees, founders and early backers often face lockup periods that temporarily prevent them from unloading their shares.
Once those restrictions expire, more stock becomes available to trade. Those shareholders won’t necessarily sell immediately, but buyers may eventually need to absorb substantial blocks of stock.
That creates a potential share overhang (4): The prospect of selling that could weigh on prices if demand doesn’t keep pace.
Jones compared the current market to 1999, describing a divide between businesses benefiting from AI and those being left behind.
He also sees room for a strong finish to 2026. His warning concerns what could follow, rather than a prediction that investors should expect an immediate collapse.
The distinction matters because a technology can succeed even if not every investment tied to it pays off. A company might increase its profits while its stock falls if investors become unwilling to pay such a high price for those earnings.
Falling valuations can sometimes outweigh rising earnings. Additional investor money could help absorb the new supply, but that outcome isn’t guaranteed.
You don’t have to predict which AI company will win to review your own exposure. If retirement is approaching, it’s worth knowing how a difficult stretch for stocks would affect the money you expect to live on.
Give gold a place in the conversation
Central banks have their own reasons for looking beyond stocks and bonds.
In the World Gold Council’s 2026 survey (5), 90% of respondents cited gold’s crisis performance as a reason to hold it, while 82% pointed to portfolio diversification. Institutions manage very different portfolios from individual retirees, but the findings help explain gold’s appeal when investors worry about market shocks.
One way to invest in gold while gaining significant tax advantages is to open a gold IRA with American Hartford Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account — combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to potentially hedge their retirement funds against economic uncertainties.
Even better, you can roll over existing 401(k) or IRA accounts into a gold IRA without tax-related penalties. American Hartford Gold also helps keep startup costs down with free account setup, free insured shipping and up to five years of free storage. To learn more, get your free information guide on investing in precious metals.
If you change your mind, you can cancel within seven days for a full refund on eligible assets. With their price protection guarantee, if prices drop within seven days of your purchase, your order is repriced to reflect the lower price.
Jones’s warning centers on how much investors will pay for stocks. Rental property offers another potential return: the rent tenants pay, giving investors profit-producing exposure beyond the market.
But the time, effort, and costs of managing and maintaining multiple properties keep many from investing.
That’s where mogul comes in. This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process that requires a minimum 12% return, even in downside scenarios. Overall, the platform averages an annual IRR of 18.8%. Their cash-on-cash yields average 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets and doesn’t depend on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds an extra layer of safety by creating a permanent, verifiable record of each stake.
Getting started is quick and easy. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Check whether your portfolio still fits your retirement
A strong market can push you to take more risk than you originally intended.
The SEC’s Investor.gov website (6) gives a simple hypothetical example: A portfolio that starts with 60% in stocks could reach 80% in stocks after market gains. Without rebalancing, your retirement savings could become much more exposed to a downturn.
Before adding another investment, it helps to understand what you already own, how much risk you’re carrying and what you’ll need to withdraw in retirement.
A financial advisor can help crunch the numbers and build a plan that works.
But hiring an advisor can be a lifelong commitment, and it can make or break your retirement. That’s why finding reliable advisors is crucial.
That’s where Advisor.com can come in. The platform connects you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.
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