Known as the Bond King, Jeff Gundlach recently talked about the best time for buying cryptocurrency. The billionaire said that a true pivot from the US Federal Reserve was needed.
Moreover, Gundlach also talked about the rising risk of deflation and said that it was the best time for investors to become bearish in terms of the stock market.
The chief executive and founder of Doubleline, Jeffrey Gundlach recently gave an interview to CNBC in which he talked about the bond and stock markets, the US economy, and the right time to buy crypto.
His investment management firm has its headquarters located in Tampa, Florida and as of June 30th, the total assets under management (AUM) of the company, were over $107 billion.
During his interview, the billionaire said that he believes it is still too early for investors to jump on the crypto bandwagon.
He stated that this was because the Federal Reserve was still continuing with its interest rate hikes and was not likely to stop right away.
Gundlach said that he would certainly not buy crypto at such a time.
The Bond King
In 2011, the billionaire appeared on the cover of Barron’s, which had the title ‘The New Bond King’. Thus, people began to refer to him as the Bong King.
In 2013, he had been named as ‘Money Manager of the Year’ by Institutional Investor and in 2012, he had been ranked as one of ‘The Fifty Most Influential’ by Bloomberg Markets.
He received the same honor in 2015 and then 2016 as well. In 2017, Gundlach was inducted into the FIASI Fixed Income Hall of Fame.
The total net worth of the billionaire currently is around $2.2 billion.
In the interview on Tuesday, the billionaire said that the best time for people to enter the crypto market, or return to it would be when the Federal Reserve makes a pivot.
This means it would move away from its interest rate hikes and would turn towards its ‘free money’ policies.
He cited the fears of economic recession and the hawkish stance of the Fed and said that without a true pivot, it did not make sense for people to enter into crypto.
He added that investors should only be thinking about crypto investment when there are clear indications of a pivot in monetary policy.
Apart from that, Gundlach also warned that deflation risks are quite high and it has become a threat to the US markets and economy.
He said that investors should take a bearish stance toward US equities and predicted a 20% fall in the S&P 500 index by mid-October.
He stated that the credit market was behaving in a consistent manner when it comes to stock market problems and economic weakness.
He also admitted that choosing stocks was not his forte, but he added that he thinks emerging markets are the best opportunity that equity investors can explore.
He also said that investors should think about long-term US securities because of deflation risks.