Billionaire ‘Bond King’ Jeff Gundlach said bitcoin could tumble 27% from current levels and warned the dollar may be ‘doomed’ in a recent interview. Here are his 10 best quotes.

Jeffrey Gundlach
Jeffrey Gundlach

Billionaire investor and “Bond King” Jeff Gundlach said inflation of today reminds him of the 1970’s, warned that the dollar may be doomed in the long term, and said that bitcoin’s chart looks “scary” in a Thursday CNBC interview.

Here are the DoubleLine Capital founder’s 10 best quotes.

1. “The chart on bitcoin looks pretty scary….I have a feeling you’re going to be able to buy it below 23,000 again. Bitcoin has really lost its steam.”

2. “I think it’s only a trading vehicle. I’ve never been long bitcoin personally. I’ve never been short Bitcoin. It’s just not for me. I don’t have that kind of risk tolerance in my DNA where I have to get worried to pull up the quote every day to see if it’s down 20%. But I would not own Bitcoin presently. I think you had an opportunity to buy it at a cheaper level.”

3. “I don’t want to be overly dramatic, but I think the dollar-I will use the word ‘doomed’ in the long term. In the short term, the dynamics have been and will continue to be in place for the dollar to be marginally or moderately stronger.”

4. “It”s getting difficult for the Fed to talk about this inflation situation as being temporary or ‘transitory’, as they like to say…import prices came up today up 11%. We all know the CPI came up with 5.4. I mean, these are numbers that remind me of the 1970s.”

5. “Inflation right now is not decelerating. It’s accelerating right now. And I’m going to go with the trend is your friend until there’s some evidence to the contrary.”

6. “As long as [the stimulus] goes on, I think the stock market can stay at nosebleed levels as it has been and continue to kind of grind higher.”

7. “The biggest case for stocks is that they’re cheap to bonds. They still are cheap to bonds because the bond yield is so ridiculously low.”

8. “I don’t really hear anybody talking about what they’re going to do with the planed curtailment of stimulus, but I expect that to start becoming an issue pretty soon,” said Gundlach. “The issue is, if the stimulus continues at the level it’s at, the inflation is not going to go away. In fact, the inflation could get worse. If they take the stimulus away, then the inflation probably won’t get worse, but the economy is extremely uncertain at that point in time.”

9. “It’s all part of this speculative mania that has been fueled by repeated rounds of stimulus. The first rounds of stimulus people saved a little bit or pay down their credit card debt. The most recent round of stimulus went into speculation and spending. So if stimulus continues, it’s going to go into speculation and spending,” on meme stocks and the SPAC frenzy.

10. “It’s odd when the CPI comes out hot, the bond market doesn’t go down..that’s obviously because the bond market is thinking one move ahead in the chess game: that the Fed may actually have to start doing something about seriously, reducing the bond buying programs, and maybe even God forbid start raising short-term interest rates.”

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Billionaire ‘Bond King’ Jeff Gundlach says bitcoin appears to be in ‘bubble territory’

FILE PHOTO: Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital LP., speaks at the Sohn Investment Conference in New York City, U.S. May 4, 2016.  REUTERS/Brendan McDermid
FILE PHOTO: Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital, speaks at the Sohn Investment Conference in New York

  • “Bond King” Jeffrey Gundlach told CNBC on Monday bitcoin hit “bubble territory” once it passed $23,000, and he doesn’t feel comfortable with the coin’s current levels. 
  • “I don’t like bitcoin here, I don’t like things that are up on a stilt like that,” the DoubleLine Capital founder said of the coin that rallied nearly 300% in 2020. He added that he’s “neutral” on bitcoin.
  • Bitcoin fell as much as 13% on Monday to $30,558. It’s lost over $10,000 in value since hitting a record above $41,000 last week, but the coin is still up nearly 89% in the last month.
  • Watch bitcoin trade live here.

“Bond King” Jeffrey Gundlach told CNBC on Monday bitcoin hit “bubble territory” once it passed $23,000, and he doesn’t feel comfortable with the coin’s current levels.

“I don’t like bitcoin here, I don’t like things that are up on a stilt like that,” the DoubleLine Capital founder said of the coin that rallied nearly 300% in 2020.

Bitcoin fell as much as 20% on Monday, to $30,324. While the coin has lost roughly $10,000 in value since hitting a record above $41,000 last week,it’s still up nearly 89% over the past month. Gundlach suggested bitcoin’s run-up has happened all too fast.

“People seem to be so much on one side of the boat that I just really don’t really believe the boat can sail that well, and I think that’s where bitcoin is on the bullish side right now,” he said. 

Read more: The CIO of a $500 million crypto asset manager breaks down 5 ways of valuing bitcoin and deciding whether to own it after the digital asset breached $40,000 for the first time

The investor added that bitcoin has a “terrific supply and demand dynamic” if institutions get involved. The total number of bitcoins that can ever be mined is 21 million, which means that the supply stays scarce even if demand grows. He’s insisted that he’s not a “bitcoin hater” and told CNBC he went neutral on bitcoin after it hit $23,000.

In a DoubleLine webcast in December, he said: “I’m not a bitcoin pro or con person. I’m not in the cult, and I’m not in the anti-bitcoin cult. I just look at it as a fascinating representation of animal spirits and speculation.”

Earlier, in a RealVision interview from Oct 1, Gundlach said he “didn’t believe in bitcoin.”

“I think that it’s a lie,” he said. “I think that it’s very tracked, traceable. I don’t think it’s anonymous.” Gundlach later added that he was “not at all a bitcoin hater.”

Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end

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Billionaire ‘Bond King’ Jeff Gundlach said stocks will crash, predicted a weaker dollar, and questioned bitcoin in a recent interview. Here are the 10 best quotes.

gundlach
2011 Jeffrey Gundlach co-founder and Chief Executive Officer and Chief Investment Officer of DoubleLine speaks at the 16th annual Sohn Investment Conference in New York May 25, 2011.

  • Jeff Gundlach, the billionaire investor known as the “Bond King,” predicted in a RealVision interview in October that stocks would crash in less than 18 months.
  • The DoubleLine Capital CEO also said the US dollar would dive in the long run, argued that tech stocks like Apple and Amazon were the only US equities worth owning, and questioned bitcoin, welfare, and Chipotle’s valuation.
  • Here are Gundlach’s 10 best quotes from the discussion.
  • Visit Business Insider’s homepage for more stories.

In a RealVision interview filmed and released in early October, the billionaire “Bond King” Jeff Gundlach said stocks would crash within 18 months, predicted that the US dollar would tumble in the long run, and voiced his doubts about bitcoin.

Gundlach, the founder and CEO of DoubleLine Capital, also called out Chipotle’s valuation, criticized welfare, and argued that the only US equities that made sense to own right now were the largest technology stocks.

Here are Gundlach’s 10 best quotes from the conversation, condensed and lightly edited for clarity:

1. “Valuation makes absolutely zero difference when you’re in a true, brutal bear market. You just go to prices that you just can’t believe.” – on the tricky 1994 bond market and how it prepared him for the financial crisis.

2. “I’m actually long the dollar now, even though I don’t believe in it at all. It’s a good investment for the next five years.” Gundlach added that he was “very, very negative long term on the US dollar” because of the ballooning budget deficit and the prospect of higher inflation, and that he sees betting against it as “the big trade for the years ahead.”

3. “If I want it to invest for my great-great-great-great-grandchildren, I’m positive that certain real-estate investments and certain resource investments would be obvious winners. Who cares about your great-great-great-grandchildren?” – on the need for fund managers to balance the lower risks of a longer investment time frame with investors’ impatience.

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

4. “If you want to own US stocks, you should own those six knowing that you’re going to take a bloodbath if you overstay your welcome … You’ve just got to have your finger on the exit button or pretty close by, but I think that’s your only chance of making money.” – advising people that they should own Apple, Amazon, and the other “big tech” stocks that have driven the market in recent years.

5. “The one that just blows my mind is Chipotle. I just can’t understand why the stock has tripled over the last six months. It just baffles me. Isn’t the price-to-earnings ratio like 150 or something? That’s a lot of tacos.”

6. “I do think that within 18 months it’s going to crack pretty hard. When the next big meltdown happens, I think the US is going to be the worst-performing market.” – predicting a stock-market crash that would be exacerbated by a weakening dollar.

Read more: ‘The largest financial crisis in history’: A 47-year market vet says the COVID-19 crash was merely a ‘fake-out sell-off’ – and warns of an 80% stock plunge fraught with bank failures and bankruptcies

7. “It’s comical how people talk about modern monetary theory or universal basic income as some wacky idea. We’ve been doing it since the 1960s. What do you think welfare is? It’s universal basic income, just for a certain subset of the population. It hasn’t exactly solved the problems. In fact, in my view, it’s made it much worse.”

8. “I don’t believe in bitcoin. I think that it’s a lie. I think that it’s very tracked, traceable. I don’t think it’s anonymous.” Gundlach later added that he was “not at all a bitcoin hater.”

9. “I prefer things that I can put in the trunk of my car. I prefer my Mondrian on the wall to a digital entry that has the same value.” – on his preference for physical investments

10. “It will be quite a pleasant experience to not be in the car on the first wheel of the roller coaster that’s coming.” – on his cautious approach to investing in anticipation of a crash

Read more: Bank of America lays out its scenario for how the next big top in stocks will form – and pinpoints the trigger that could cause a meltdown shortly after

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