Jones: 1987 crash was 100% caused by derivatives and portfolio insurance
Paul Tudor Jones · Legendary Trader Paul Tudor Jones on AI Risk, Bubbles and Buffett · Invest Like The Best · Apr 28, 2026 · at 38:08
Billionaire macro trader Paul Tudor Jones discusses historical market crashes and the structural mechanics behind the 1987 crash.
0:00 / 0:15exact quote · 16.0s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“1987, that crash was 100% portfolio insurance. Hundred percent. Had they had limits, Which they didn't. It had been a 10%, maybe 15% max, but that was a hundred percent derivatives.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Paul Tudor Jones
Modelers say AI safety action requires 50 to 100 million deaths
“What's so scary when I was at this conference, which is only about 35 or 40 people, with one modeler from the four biggest model companies, and when I was able to ask them pointedly,
How do you think that AI safety gets resolved?
The, pretty much the consens…”
Jerome Powell kept policy easy to secure Biden reappointment, says Jones
“Powell, he overstayed being easy way too long because he wanted Biden to reappoint him.”
Paul Tudor Jones: Bitcoin is unequivocally the best inflation hedge, beating gold
“Bitcoin is unequivocally the best inflation hedge that there is, more than gold, because Bitcoin is finite. There's only so much Bitcoin that can be mined.”
Paul Tudor Jones: The US President must urgently lead global AI regulation with China
“If there ever was a leadership position that needs to be taken by any, ah, president, it's on AI regulation right now, not just the United States, but convening with China, with all the other our purveyors are, to make sure that we don't do something that has …”
Paul Tudor Jones: Mandating AI watermarking with felony penalties is essential
“The one thing that I think should be part of this next election, the simplest, most important thing that we can do is we can demand that all AI is watermarked. That's the single most transformative thing that we could possibly do for the country, for the world…”