Billionaire Jeffrey Gundlach, aka the Bond King, has shared his view on when to buy cryptocurrency. “You need a true Fed pivot,” he stressed. Gundlach also warned about the increasing risk of deflation, noting that it’s time to be bearish on the stock market.
Jeffrey Gundlach on Fed Rate Hikes, U.S. Economy, and When to Buy Crypto
The founder and chief executive of investment management firm Doubleline, Jeffrey Gundlach, shared his outlook on the U.S. economy, stock and bond markets, and when to buy crypto this week. Headquartered in Tampa, Florida, Doubleline has over $107 billion in assets under management (AUM) as of June 30.
In an interview with CNBC on the sidelines of the Future Proof conference Tuesday, the billionaire explained that it is too early to jump on the crypto bandwagon as the Federal Reserve is likely to raise more interest rates.
Commenting on whether it is a good time to buy cryptocurrency under the current market conditions, Gundlach opined:
I’d certainly not be a buyer today.
Gundlach is sometimes known as the Bond King after he appeared on the cover of Barron’s in 2011 as “The New Bond King.” Institutional Investor named him “Money Manager of the Year” in 2013 and Bloomberg Markets ranked him one of “The Fifty Most Influential” in 2012, 2015, and 2016. He was inducted into the FIASI Fixed Income Hall of Fame in 2017. His net worth is currently about 2.2 billion.
In the Tuesday interview, the billionaire stressed that the time to return to the crypto space would be when the Federal Reserve pivots from rate hikes and begins its “free money” policies. Citing the Federal Reserve’s hawkish stance and recession fears, Gundlach emphasized:
I think you buy crypto when they do free money again … You need a true Fed pivot.
He added that investors should not buy crypto when there are only “dreams” of a monetary policy pivot.
The Doubleline CEO also cautioned about the increasing risk of deflation, seeing it as the key threat to the U.S. economy and markets. He explained that it is time for investors to become more bearish on U.S. stocks, noting that the S&P 500 could fall 20% by mid-October.
“The action of the credit market is consistent with economic weakness and stock market trouble,” Gundlach described, elaborating:
I think you have to start becoming more bearish.
While admitting that stock picking is not his forte, he said: “You always want to own stocks, but I’m a little on the lighter…
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