Billionaire Jeff Gundlach Discusses When to Buy Crypto — Warns of Deflation Risk

Jeffrey Gundlach (aka the Bond King) has also shared his views on when it is best to invest in cryptocurrency. He stressed that "You need a true Fed pivot." Gundlach warned of the growing risk of deflation and said that it was time to be bearish in the stock market.

Jeffrey Gundlach: Fed Rate Hikes, U.S. economy, and When to Buy Crypto

Jeffrey Gundlach is the founder and chief executive at investment management firm Doubleline. He shared his views on the U.S. stock and bond markets and when it's time to invest in crypto. Doubleline, headquartered in Tampa, Florida has more than $107 billion in assets under administration (AUM).

The billionaire, speaking to CNBC at the Future Proof conference on Tuesday, explained that it was too soon to jump on the crypto bandwagon because the Federal Reserve will likely raise interest rates.

Gundlach commented on whether it was a good time for cryptocurrency purchases given the market conditions.

I wouldn't be a buyer right now.

Gundlach is often known as the Bond King. He was featured on Barron's cover in 2011 as "The NEW Bond King". Institutional Investor named Gundlach "Money Manager Of The Year" in 2013. Bloomberg Markets also ranked Gundlach one of "The Fifty Most Influential" for 2012, 2015, 2016 and 2016. In 2017, he was inducted into FIASI Fixed Income Hall of Fame. His net worth currently stands at 2.2 billion.

The Tuesday interview saw the billionaire stress that it was time for crypto to be returned to when the Federal Reserve stops raising rates and starts its "free money” policies. Gundlach stressed the Federal Reserve's hawkish stance as well as recession fears.

You should only buy crypto when the Fed makes money again.

He said that crypto should be avoided when there is no possibility of a monetary policy pivot.

Doubleline CEO, also warned about deflation. He saw it as a key threat to the U.S. markets and economy. He stated that investors should be more bearish about U.S. stocks and noted that the S&P 500 could drop 20% by mid October.

Gundlach explained, expounding: "The credit market's actions are consistent with economic weakness"

You need to be more bearish.

Although he admitted that stock picking was not his forte, he stated: "You always want stocks, but I'm more on the lighter side." However, he believes emerging markets are the greatest opportunity for equity investors.

He suggested that investors invest in long-term U.S. government debt securities because of the danger of deflation. He advised that investors "Buy long-term Treasurys" and stressed:

Today's deflation risk is greater than in the past two years.

He clarified that he was not referring to next month. "I'm referring to sometime in the future next year, if not 2023."

Elon Musk, Tesla CEO, warned recently that a Fed rate increase could cause deflation. This echos the Ark Invest CEO Cathie Wood's warning that "leading inflation indicators such as gold and copper are flagging deflation."

What do you think of the comments made by Jeff Gundlach, a billionaire, about deflation and when it is time to buy crypto? Comment below to let us know your thoughts about Jeff Gundlach's comments on deflation and when to buy crypto.

By: Kevin Helms
Title: Billionaire Jeff Gundlach Discusses When to Buy Crypto — Warns of Deflation Risk
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Published Date: Sun, 18 Sep 2022 01:30:47 +0000

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