Billionaire Jeff Gundlach Discusses When to Buy Crypto — Warns of Deflation Risk – Economics Bitcoin News

Billionaire Jeffrey Gundlach, aka the Bond King, has shared his views on when to buy crypto. “You need a real Fed spindle. Gundlach also warned of the growing risk of deflation, noting that it’s time to turn bearish on the stock market.

Jeffrey Gundlach on Fed rate hikes, US economy and when to buy crypto

The founder and CEO of investment management firm Doubleline, Jeffrey Gundlach, shared his outlook on the US economy, the stock and bond markets, and when to buy crypto in the future. this week. Headquartered in Tampa, Florida, Doubleline has more than $107 billion in assets under management (AUM) as of June 30.

In an interview with CNBC on the sidelines of the Future Proof conference on Tuesday, the billionaire explained that it is too early to jump into the crypto wars because the Federal Reserve is more likely to raise interest rates.

Commenting on whether this is a good time to buy crypto in the current market conditions, Gundlach chooses:

I’m definitely not a buyer today.

Gundlach is sometimes referred to as the Bond King after he appeared on the cover of Barron in 2011 as the “New Bond King”. Institutional investors named him “Money Manager of the Year” in 2013, and Bloomberg Markets named him one of the “Fifty Most Influential People” in 2012, 2015 and 2016. He was inducted into the FIASI Fixed Income Hall of Fame in 2017. His net worth is currently around VND2.2 billion.

In the interview on Tuesday, the billionaire emphasized that the time to return to the crypto space would be when the Federal Reserve pivots away from raising interest rates and begins “free money” policies. mine. Citing the Federal Reserve’s hawkish stance and recession fears, Gundlach emphasized:

I think you buy crypto when they make free money again… You need a Fed spindle.

He added that investors should not buy cryptocurrencies when there is only a “dream” of a monetary policy axis.

The Doubleline CEO also warned of the growing risk of deflation, seeing it as a major threat to the US economy and markets. He explained that it’s time for investors to become more bearish on US stocks, noting that the S&P 500 could drop 20% by mid-October.

“The action of the credit markets is consistent with the economic weakness and stock market troubles,” Gundlach describes and further explains:

I think you have to start becoming more bearish.

While acknowledging that picking stocks isn’t his forte, he said: “You’ve always wanted to own stocks, but I’m a little more gullible.” Still, he sees emerging markets as the biggest upcoming opportunity for equity investors.

Citing deflationary risks, he suggested that investors dive into long-term US debt securities. “Long-term Treasure Purchases,” he advises, emphasizing:

The risk of deflation is much higher today than it has been in the past two years.

Regarding the timeframe, he made it clear: “I am not talking about next month. I’m talking about the end of next year, definitely 2023.”

Recently, Tesla CEO Elon Musk also warning that a major Fed rate hike could lead to deflation, echoing Ark Invest CEO Cathie Wood’s statement that “Leading inflation indicators like gold and copper are flagging a deflationary risk. “.

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What do you think of billionaire Jeff Gundlach’s comment on deflation and when to buy crypto? Let us know in the comments section below.

Kevin Helms

An Austrian Economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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