Paul Tudor Jones says he can’t think of a worse financial environment for stocks or bonds right now

Billionaire hedge fund manager Paul Tudor Jones said the environment for investors is worse than ever as the Federal Reserve is raising interest rates when financial conditions have already become increasingly tight.

“You can’t think of a worse environment than where we are right now for financial assets,” Jones said Tuesday on CNBC’s “Squawk Box.” “Clearly you don’t want to own bonds and stocks.”

The Fed is expected to announce a half-percentage point increase in its benchmark interest rate on Wednesday, to tamp down surging inflation at a 40-year high.

The founder and chief investment officer of Tudor Investment believes investors are now in “uncharted territory” as the central bank had only eased monetary policy during past economic slowdowns and financial crises. He said investors should prioritize capital preservation in such a challenging environment for “virtually anything.”