Paul Tudor Jones is a reclusive hedge fund legend who never talks to the press. So much so that "PTJ" even tried to bury a PBS documentary featuring him from 1987 by purchasing all the available copies.

But apparently he did reveal his thoughts on this market at a closed-door meeting earlier this month with Goldman Sachs, and Bloomberg News has what he allegedly said second hand according to people who were there. CNBC has also confirmed these comments with a source who was there.

PTJ, who made a large part of his fortune by calling the infamous stock market crash in October 1987, referred to a chart of the market's value relative to the country's economy and said it should be "terrifying" to central bankers, namely Federal Reserve chief Janet Yellen, according to the report.

Below is a version of this chart from the website dshort.com:

The trader said that low interest rates instituted by central bankers around the world have ballooned U.S. stock market valuations back to 2000 levels, right before the dot-com bubble burst and shares plunged.

This chart is sometimes called the "Buffett Indicator" because the Berkshire Hathaway chairman once referred to it in an interview as one of the key measures of valuation he tracks. CNBC pointed out at the end of last month that some investors and traders were starting to discuss it once again.

Back in 2000, this version of the chart shows that investors had valued the stock market at more than 130 percent of the total economy. Today it stands at around 121 percent, lower than that high point, but still out of whack with the average over time.



The indicator basically shows investors are unrealistically valuing future growth in the economy. Buffett had said the buying opportunity is at much lower levels below 100 percent.

To be sure, Tudor Jones did not say it was time to bet against stocks yet and even acknowledged the market could go higher still if Sunday's French election goes as expected, according to the report.

He does believe it eventually will happen though with the downside move exacerbated by low-volatility vehicles called risk-parity funds.

The posted a record close Thursday as investors continue to believe higher earnings and President Donald Trump will justify current levels. Two investing legends apparently disagree.

See here for the full Bloomberg News report.

--With reporting by Leslie Picker