Jeffrey Gundlach, the CEO of Doubleline Capital warned that a recession is likely later this year. He advised investors to avoid buying bitcoin at its current price. According to him, it may be worth buying when its price is about $25,000.
His Warning on Recession and Bitcoin
The firm under him manages assets worth more than $137 billion. Sometimes he is called “Bond King” because of his appearance on the Barron’s cover in 2011 where he was referred with the same term. Asked about a recession happening in 2023, he replied that a recession can already be seen in the bond market so it is more likely to happen in 2023. According to him, investors, economists and Fed officials do not like the economy heading toward low interest rates. The Fed can raise the rate four times and then several recessionary signals will start appearing.
Other Experts Think Recession Is Worse Than Estimated
Jamie Dimon, CEO of JPMorgan on Monday said that interest rates of short term may be raised this year more than 4 times. According to him, inflation may be in far worse situation than currently estimated by people. It would not surprise him if it increased four times this year. A Wharton School finance professor had early this month warned about high inflation. He had predicted the Fed increasing rates several times more than what the market is expecting.
When it comes to bitcoin, Gundlach thinks it is only for speculators. Citing the price movements of BTC in recent times, he advised against buying it. He opined that its purchase may be worth if it is trading at $25,000. According to him, he does not invest in bitcoin and bonds are better for overly cautious investors like him.