- Jeff Gundlach, the billionaire investor known as the “Bond King,” predicted in a RealVision interview published on Friday 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 on October 1 and released on Friday, 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.
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…