Billionaire 'Bond King' Jeff Gundlach says FAANG stocks are losing steam, the economy is 'living off government rescues,' and he's neutral on bitcoin in a recent webinar. Here are his 10 best quotes.

• Jeff Gundlach, the billionaire investor known as the "Bond King," said in a DoubleLine Funds webcast on Tuesday that FAANG stocks may be breaking down as the "market's generals."
• The DoubleLine Capital chief executive also said bitcoin is a 'fascinating representation of animal spirits and speculation,' the economy is living off of government rescues, and questioned what a boom in Christmas tree sales could say about the American consumer.
• Here are Gundlach's 10 best quotes from the webcast.
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Billionaire investor Jeff Gundlach said mega-cap tech stocks may be losing steam, warned about how government transfer payments are worsening wealth inequality, and clarified his stance on bitcoin in a Tuesday webcast for his DoubleLine Total Return Bond Fund. Here are the DoubleLine Capital CEO's 10 best quotes.

1. "The performance has just been staggering...the generals seem to be not joined in the battle right now, so that bears watching."-on the FAANG stocks and Microsoft.
2. "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."
3. "It strongly suggests to me that emerging markets would be a superior investment to the United States stock market, at least the S&P 500 going forward."-on the high valuations of US equities.
4. "You want to talk about something that has done well in the past 9 months, look at existing home sales...thanks to virtual showings and lots of government money, and really low mortgage rates offered up by the federal government's support of the bond markets, we see that existing home sales have gone from one of the lowest readings of the past 20 years to one of the highest readings of the past 20 years. And there seems to be no end in sight for this one, if interest rates stays low as they are."
5. "The economy is definitely living for sure off of government transfer payments and government rescues, and the question is, is there any end in sight for this? Is there going to be a paradigm that will be with us for as far as the eye can see? Certainly every day on the news wires, we see either hopes being dashed or hopes being revived for another stimulus package. So clearly the mindset is to continue these insurance recipients keeping their assistance."
6. "The percentage of benefits as a percentage of household income has been on the march higher with no end in sight, really ever since the Great Society program started in the mid 1960s." He said 2% of household income came from government benefits in the mid-20th century, but is now around 22%.
   
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7. "This of course causes massive wealth inequality, because people on government benefits are not the upper 10% income level, so you're basically keeping people locked out of the economy but you're bribing them essentially with the government money. It doesn't lead to a very healthy economy and it doesn't lead to a harmonious society as we've seen this year."-on transfer payments and government benefits.
8. "I think at this point we can just admit the Fed wants a minimum inflation rate of 2%.They don't want the average 2, they certainly don't see 2 as a ceiling. I think they want it to be higher than 2 for quite some time. In fact I think what the Fed really wants is to have the inflation rate higher than the Treasury interest rates of the new issuances, because that way it's really easy to pay that debt back."
9. "We expect that inflation will trough this month or next month, and then move actually into the 2's, we believe, for much of the year 2021. We think the year over year inflation rate will be somewhere in the 2.25 range, maybe as high as 2.4 or so."
10. "I am hearing anecdotally some funny economic statistics: Christmas tree sales have exploded higher for live Christmas trees. I wonder why that is. Maybe people like the smell of a live tree and they're stuck in the house. So they're actually up 30% from a year ago and that's for the last two weeks. And apparently the preference is for very large Christmas trees. So it's kind of funny what things happened that you wouldn't really think about."-on consumer confidence in the US.