Billionaire Jeff Gundlach Discusses When To Buy Crypto – Warns Of Deflation Risk

Billionaire Jeffrey Gundlach aka the Bond King shared his thoughts on when to buy cryptocurrency. “You need a real linchpin of the Fed,” he emphasized. Gundlach also warned of the growing risk of deflation, noting that it is time to be bearish in the stock market.

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

Founder and CEO of investment management firm Doubleline, Jeffrey Gundlach, shared his take on the US economy, stock and bond markets and when to buy crypto this week. Doubleline, based in Tampa, Florida, had 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 on the crypto train as the Federal Reserve is likely to raise interest rates further.

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Commenting on whether now is a good time to buy cryptocurrency under current market conditions, Gundlach said:

I certainly wouldn’t be a buyer today.

Gundlach is also known as the Bond King after appearing 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 named him among the “Fifty Most Influentials” in 2012, 2015 and 2016. He was inducted into the FIASI Fixed Income Hall of Fame in 2017. 2.2 billion.

In Tuesday’s interview, the billionaire pointed out that the time to step back into the crypto space would be when the Federal Reserve scraps rate hikes and kicks off its “free money” policy. Citing the Federal Reserve’s aggressive stance and fears of a recession, Gundlach noted:

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

He added that investors should not buy crypto if there are only “dreams” of a linchpin of monetary policy.

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

“The credit market action is consistent with the economic weakness and the struggle in the stock market,” Gundlach described, adding:

I think you need to get more bearish.

While admitting stock selection isn’t his forte, he said, “You still want to have stocks, but I’m a little lighter.” Still, he sees emerging markets as the biggest opportunity for equity investors.

Citing the risk of deflation, he suggested that investors dive into long-term US debt securities. “Buy long-term government bonds,” he advised, noting:

The risk of deflation is much greater today than in the past two years.

Regarding the calendar, he clarified: “I’m not talking about next month. I’m talking about a little later next year, certainly in 2023.”

Recently, Tesla CEO Elon Musk also warned that a major rate hike by the Fed could lead to deflation, echoing Ark Invest CEO Cathie Wood’s statement that “leading indicators of inflation such as gold and copper indicate the risk of deflation.”

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

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Kevin Helms

Kevin, an economics student from Austria, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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