Stocks will see a big surge in the 1st quarter of 2021 after stimulus passes, forecasts billionaire investor Paul Tudor Jones

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• Billionaire investor Paul Tudor Jones told CNBC the stock market could see a large gain at the beginning of 2021 due to the next fiscal stimulus. 
• Jones pointed to the stock-buying spree that occurred after the first stimulus was passed in the spring. "Robinhood nation ... went crazy and bought stocks," he said. 
• He also discussed how Joe Biden's tax plan will help Main Street, but could cause financial assets to "suffer a great deal" over the long run.

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Billionaire investor Paul Tudor Jones told CNBC on Thursday the stock market could see a large gain in the beginning of 2021 after the next stimulus is passed. 

"At some point in the first quarter next year you're going to have a big move to the upside from whatever level that might be, as people get cash from this first stimulus program and they deploy that in a variety of financial assets," Jones said.

The founder of Tudor Investment Corp. pointed to the large amount of buying that occurred after the CARES Act stimulus bill passed last spring.

"Robinhood nation ... went crazy and bought stocks," Jones said. 

He expects stimulus to be passed in the next six to eight weeks and total around $1.7 trillion. But the end of 2020 could be shakier for stocks, he added. 

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"I could easily see a situation where the market sells off in the year end, and then you have that typical beginning of the year rally, that might ramp all the way through the end of the first quarter, certainly the mid-part of the first quarter," he said.

Jones also said that Joe Biden's capital-gains tax plan would cause financial assets to "suffer a great deal" over the long run should he win the presidency.

"If you go back and look in history there's an inverse relationship — it's loose but it's clearly there — between stocks multiples and capital-gains tax," he said.

"I think the Biden tax plan is actually going to do exactly what it's designed to do, which is to help Main Street, help the average American," said Jones. "And it's going to come at the expense of the 1%, primarily whose wealth is encapsulated in the stock market and financial assets, and it's going to come at their expense and you're probably going to get a multiple compression, and you'll probably get some kind of mean reversion."

Read more: An investing shop overseeing $476 billion analyzed 650 stocks to fine-tune its election strategy. The firm's experts break down the trades to make around a Biden win — and explains how investors can keep portfolios safe.

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