Billionaire ‘Bond King’ Jeffrey Gundlach Calls Bitcoin a Good Hedge Against Inflation Risk
Investors should be protecting against inflation, and Bitcoin and gold are a good hedge against that risk, said Jeffrey Gundlach, the billionaire chief executive officer of DoubleLine investment firm, in a webcast hosted by Rosenberg Research on Monday.
He also said that he is bearish on long-dated bonds during the webinar, like the 30-year Treasury. But in a deflationary environment, he still thinks, “you’re supposed to own some” to hedge against the risk of deflation. And some cash too.
Since August 6, 2020 the yield on the 30 Year US Treasury Bond has been rising at a 200 basis point annual rate. If that continues through August 6, 2021 the Bond’s year-over-year total return will be approximately -35%!
— Jeffrey Gundlach (@TruthGundlach) October 30, 2020
Gundlach doesn't have any love lost for Bitcoin even still, and he remains a proponent of the yellow metal, the traditional store of value, as he thinks gold is a good holding for the tail risk down the road, which according to him, will go up very substantially over time.
Previously he had said that he has “no interest in this type of maniacal type of trading market,” in reference to crypto.
Although the bond king did say in January this year that bitcoin will reach $15,000 in 2020, “it’s just about time for the dollar to weaken,” last month in an interview with RealVision, he said he doesn't believe in the leading digital currency, calling it a “lie.”
“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,” said Gundlach to add later that he was “not at all a bitcoin hater.”
Gundlach says you should own something to protect against inflation. Says Bitcoin (though he doesn’t like it) and gold are good for inflation case.
— Julia La Roche (@JuliaLaRoche) November 2, 2020
On Monday, besides Gundlach, Chris Zarou, founder and CEO of Visionary Music Group, also publicly announced his support for Bitcoin as he said, “I’m irresponsibly long Bitcoin.”
As Bitcoin's price enjoys a rally in 2020, recently hitting a 34-months high and currently up 86% YTD as it trades around $13,740, the digital currency is attracting a lot of attention from everywhere; corporates, mainstream media, and potential investors.