Doubleline Capital’s CEO, the billionaire “bond king” Jeffrey Gundlach, has predicted that the stock market is going to “crack pretty hard.” While he is bearish on the stock market and long-term bonds, Gundlach says bitcoin and gold are good for hedging against inflation.
Jeffrey Gundlach Discusses Stock Market Outlook, Gold and Bitcoin
Billionaire fund manager Jeffrey Gundlach talked about bitcoin on the Rosenberg Research webinar earlier this week. He discussed the outcome of the U.S. presidential election and his investment strategies with economist David Rosenberg, Yahoo Finance correspondent Julia La Roche reported.
The CEO of Doubleline Capital is sometimes referred to as the “bond king” after he appeared 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 one of “The Fifty Most Influential” in 2012, 2015, and 2016.
Gundlach explained that he is now bearish on long-term bonds, including the 30-year Treasury, but finds it necessary to own some. “I hate long bonds, but I still think you’re supposed to own some, and in a deflationary environment, you would want your portfolio to have that hedge,” he described. Gundlach has also said repeatedly prior to the U.S. presidential election, which is still being finalized, that he expected Donald Trump to win.
Moreover, Gundlach recommends owning something to protect against inflation. He said bitcoin and gold “are good for [the] inflation case,” La Roche conveyed, adding that he believes that the price of gold will increase substantially over time.
Gundlach’s positive bitcoin comment this week came as a surprise to some people in the crypto industry since he made a negative comment about bitcoin in a Realvision interview last month. He said: “I don’t believe
