A recent comment from legendary trader, Paul Tudor Jones, has investors worried.

The man who made an estimated $100-million during the infamous stock market crash of October 1987 is sounding the alarm.

According to sources, a close-door meeting took place recently between Jones and top brass of Goldman Sachs. The reclusive billionaire warned that what’s going on in today’s stock market should be “terrifying” to central bankers.

Stock valuations today have bloated to levels not seen since 2000. Back then, as the Dot-com bubble burst, the market lost $5-trillion in value over a two year period. Jones is among many hedge fund and money managers alerting investors. Stock prices are too high and will tumble.

Jones probably knows what he’s talking about. During the 1987 crash, he used a specific investment strategy to triple his money and make a name for himself on Wall Street. In fact, that same month, his fund registered an incredible 62% return.

And he’s not the only one among the “Smart Money” crowd using this investing strategy. Back in 1992, George Soros “broke” the Bank of England with… what many market makers consider… the trade of the century. In a single day, Soros used this strategy brilliantly to pocket over one billion dollars.

Which begs the question: What do these investors know that regular investors don’t?

The shocking answer is… not much. They have the same information available to them as the rest of us. The difference lies in what they do with it. In Jones’ case, he simply looked at a few charts (anyone can get their hands on) and saw the writing on the wall. The market was about to crater. So he took the appropriate action and made a fortune.

Soros did likewise. At the time, the pound sterling was so overpriced it could not increase in value. Everyone knew that. Again, the difference was that Soros did something about it.