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 on CNBC’s “Squawk Box” Tuesday. “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 Corp. believes that 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 difficult environment .

“I think we’re in one of those very difficult periods where simply capital preservation is I think the most important thing we can strive for,” Jones said. “I don’t know if it’s going to be one of those periods where you ‘re actually trying to make money.”

Jones shot to fame after he predicted and profited from the 1987 stock market crash. He is also the chairman of nonprofit Just Capital, which ranks public US companies based on social and environmental metrics.

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