Billionaire 'Bond King' Jeff Gundlach says stocks will crash, predicts a weaker dollar, and questions bitcoin in a new interview. Here are the 10 best quotes.
- Jeff Gundlach, the billionaire investor known as the "Bond King," predicted in a RealVision interview published on Friday that
stockswould crash in less than 18 months.
DoubleLine CapitalCEO also said the US dollarwould 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 on October 1 and released on Friday, the billionaire "Bond King"
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:Advertisement
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.
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 bankruptcies7. "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."Advertisement
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
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