By David Randall NEW YORK (Reuters) – Jeffrey Gundlach, the billionaire CEO of investment firm DoubleLine Capital, said on Tuesday that he is bullish on Asian emerging market stocks and neutral on bitcoin given the cryptocurrency’s volatility. Gundlach, whose Los Angeles-based firm manages more than $ 140 billion in assets, said valuations in financial markets appear stretched due to huge amounts of global economic stimulus in response to the coronavirus pandemic. “We are still trapped in a house of mirrors,” Gundlach said in a webcast. In a powerful presentation, he noted that some long-term market trends may be stagnant, such as US stocks outperforming the rest of the world and US large-cap stocks rising more than small-caps. At the same time, he predicted that the United States could experience additional rounds of layoffs focused on middle managers as companies make some permanent domestic policy given worker preferences. The US economy cut jobs for the first time in eight months in December, and most of the job losses occurred in sectors such as hospitality and leisure, which continue to be hit by the coronavirus pandemic. Asian emerging market stocks have rebounded earlier this year, South Korean stocks were up nearly 10% and China’s CSI 300 Index was up 7.4%. The US benchmark, by comparison, has risen 1.2% over the same period. Gundlach noted that he has changed his outlook for bitcoin from overweight to neutral. The cryptocurrency fell more than 11% on Monday and remains 15% below the all-time high that it reached on January 9. “It looks like a dangerous market with this kind of volatility,” Gundlach said. “I don’t like having to worry about losing 20 percent in an hour.”
DoubleLine’s Gundlach is bullish on Asian emerging market stocks, neutral on bitcoin By Reuters
Disclaimer: Fusion Media wishes to remind you that the data contained on this website is not necessarily accurate or in real time. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so the prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur as a result of the use of this data. Fusion Media or anyone involved with Fusion Media will not accept any responsibility for loss or damage as a result of reliance on information, including data, quotes, charts, and buy / sell signals contained on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.