Jeff Gundlach, predicts a downturn this year and recommends avoiding buying bitcoin.

“A recession in the latter part of this year,” according to Doubleline Capital CEO Jeffrey Gundlach, often known as the “Bond King.” He also warned against avoiding purchasing bitcoin at this time. “Perhaps you should purchase it for $25,000,” he suggested.

Jeff Gundlach, the billionaire “Bond King,” on the Recession, Bitcoin, and the Fed Raising Interest Rates
In a conversation with Yahoo Finance published Saturday, wealthy wealth manager Jeff Gundlach predicted a crisis in the second half of this year. He also addressed the question as to whether or not traders can acquire bitcoin.

Gundlach is the founder and CEO of Doubleline Capital, which manages approximately $137 billion in assets (AUM). After appearing on the front of Barron’s in 2011 as “The New Bond King,” he became known as the “Bond King.” He was awarded “Money Manager of the Year” by Institutional Investor in 2013, and one of “The Fifty Most Influential” by Bloomberg Markets in 2012, 2015, and 2016. His net worth is reportedly $2.2 billion, as per Forbes.

He was questioned if a downturn might occur in 2023. “I think the bond market has already shown any kind of a recession indication that it is quite plausible by 2023,” Gundlach said.

“I don’t think many Fed officials, economists, or investors comprehend the reality that the economy continues collapsing at lower and lower interest rates,” he cautioned. “I believe the Fed only needs to hike rates four times before you start seeing a profusion of recessionary symptoms,” he said.

“There’s a non-zero chance you’ll have a recession in the second half of 2022.”

The Federal Reserve may have to hike brief borrowing costs more than four times in the year, according to JPMorgan CEO Jamie Dimon. “It’s possible that inflation is worse than the general public believes. “I’d be astonished if it’s only four hikes this year,” JPMorgan CEO Jamie Dimon remarked.

A financial expert at the University of Pennsylvania’s Wharton School cautioned about hyperinflation earlier this month, predicting that the Fed will raise rates “many more times than the market thinks.”

Gundlach emphasized that bitcoin is “just for speculators.” He stated, citing recent BTC price swings:

“At this time, I would advise against investing in bitcoin… Perhaps you should purchase it for $25,000?”

“That’s just not in my DNA,” the Doubleline CEO said, noting that he has never held bitcoin.

“Bonds fit my culture of cowardice,” he explained. I’m not a momentum investor at all; in fact, I’m an anti-momentum investor, and I believe bitcoin is just for momentum traders.”

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