“In 18 months, things will crack pretty hard. I think you want to avoid this for now. When the next big crisis hits, I think the United States will be the worst performing market, actually, and that will have a lot to do with the weakening dollar.
It was DoubleLine Capital billionaire Jeffrey Gundlach who was hailed as “The Bond King,” sharing his bearish thoughts on the stock market in a recent interview with Real Vision.
“I actually think that owning 25% gold gold,
is not crazy right now. I don’t think I own 25% DXY cash either,
it’s crazy, ”he said, noting that the two risk averse positions represent half of the concept of a“ permanent portfolio ”, alongside 25% in stocks and 25% in bonds.
Gundlach told Real Vision that the next “very rare” opportunity to slaughter stocks is looming in a few years. The trick is to be prepared when the good deals are there to take.
“Trade is to wait for this trade,” he said. “It will be a pleasant enough experience not to be in the car on the first roller coaster to come. I just want to be very low risk for now. ”
Waiting for this trade seemed like a very good idea on Sunday night, as futures contracts for the Dow Jones Industrial Average YM00,
S&P 500 ES00,
and the high-tech Nasdaq-100 NQ00,
all pointed out a weak opening to start the week.