Billionaire Jeffrey Gundlach Discusses When to Buy Crypto

The Bond King, billionaire, Jeffrey Gundlach, has offered his advice on whether to invest in cryptocurrencies. He emphasized that “you need a true Fed turnaround.” Gundlach also cautioned about the rising threat of deflation, saying that it is now appropriate to hold a pessimistic stance on the stock market.

When to Buy Crypto: Jeffrey Gundlach on Fed Rate Hikes, the US Economy, and More

This week, Jeffrey Gundlach, the founder and CEO of the investment management company Doubleline, gave his outlook on the American economy, the stock and bond markets, and the best time to invest in cryptocurrencies. With its main office in Tampa, Florida, Doubleline managed more than $107 billion in assets as of June 30.

The billionaire highlighted that it is too early to join the cryptocurrency trend because the Federal Reserve is likely to boost interest rates further in an interview with CNBC

Due to his appearance as “The New Bond King” on the cover of Barron’s in 2011, Gundlach is occasionally referred to as the Bond King. He was named “Money Manager of the Year” by Institutional Investor in 2013 and one of “The Fifty Most Influential” by Bloomberg Markets in 2012, 2015, and 2016. In 2017, he was admitted to the FIASI Fixed Income Hall of Fame. Currently, he has a net worth of roughly $2 billion.

The billionaire emphasized in the interview on Tuesday that the Federal Reserve’s decision to shift from rate hikes to “free money” policies would mark the right moment for investors to return to the cryptocurrency market.

Investors shouldn’t purchase cryptocurrency, he continued, while there are simply “dreams” of a change in monetary policy.

The CEO of Doubleline also issued a warning over the rising possibility of deflation, which he saw as the main danger to the American economy and stock markets. It is time for investors to become more pessimistic about American stocks, he said, pointing out that the S&P 500 may decline 20% by mid-October.

You always want to buy equities, but I’m a little on the lighter side, he added, acknowledging that stock selection is not his strong suit.

However, he believes that the best opportunity for equities investors in the near future is in emerging markets.

He clarified: “I’m not talking about next month when it comes to the time range. I’m referring to later this year, most likely in 2023.

Elon Musk, the CEO of Tesla, recently issued a similar caution, stating that “Leading inflation indicators like gold and copper are indicating the potential of deflation” in line with Ark Invest CEO Cathie Wood’s earlier warning.