Jeffrey Gundlach, CEO of Doubleline Capital, also known as the “Bond King”, has warned of “a recession later this year”. He also advised against buying Bitcoin at the current level. “Maybe you should buy it for $ 25,000,” he said.
Billionaire ‘Bond King’ Jeff Gundlach on recession, Bitcoin and the Fed rate hike
Billionaire fund manager Jeff Gundlach warned of a recession towards the end of this year in an interview published on Saturday with Yahoo Finance. He also commented on whether investors should buy bitcoin.
Gundlach is CEO of Doubleline Capital, which has over $ 137 billion in assets under management. He is sometimes referred to as the “Bond King” after appearing on the 2011 Barrons cover as “The New Bond King”. Institutional Investor named him “Money Manager of the Year” in 2013 and Bloomberg Markets named him one of the “Fifty Most Influentials” in 2012, 2015 and 2016. His net worth is currently $ 2.2 billion, according to Forbes.
He was asked if there will be a recession in 2023. “I think the bond market is already showing enough indicators of recession that it looks quite likely by 2023,” replied Gundlach.
“I don’t think a lot of Fed officials, economists, and investors appreciate the fact that the economy is buckling with ever-lower interest rates, so I think the Fed only needs to raise rates four times and you will start one.” Seeing abundance of recession signals, ”he warned, adding:
There is certainly a non-zero chance that you will experience a recession in the later part of 2022.
On Monday, JPMorgan CEO Jamie Dimon said the Federal Reserve may have to hike short-term rates more than four times this year. “Inflation may be worse than people think. Personally, I would be surprised if there were only four increases this year, ”said the JPMorgan boss.
Earlier this month, a professor of finance at the University of Pennsylvania’s Wharton School warned of inflation and predicted the Fed will raise rates “many times higher than the market expects.”
Regarding Bitcoin, Gundlach emphasized that the cryptocurrency was “for speculators”. Citing recent BTC price movements, he said:
For now, I’d advise against Bitcoin … Maybe you should buy it for $ 25,000.
The Doubleline CEO noted that he had never owned Bitcoin and admitted, “It’s just not in my DNA.”
He stated: “Bonds fit my culture of cowardice. I’m not a momentum investor at all, and in fact, I’m kind of an anti-momentum investor, and I think Bitcoin is only for momentum investors.
What do you think of Jeff Gundlach’s comments? Let us know in the comment section below.
Kevin Helms
Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.
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