Jeffrey Gundlach, founder and CEO of investment management firm DoubleLine Capital, says commodities offer better investment opportunities compared to other sectors.
In a new CNBC interview, Gundlach say that, based on the Chicago Board Options Exchange’s Volatility Index (VIX), a tool used to measure the stock market’s expected level of volatility, he is “not very enthusiastic” about stocks.
According to Gundlach, stocks need to undergo a steeper correction before they are worth investing in.
“I don’t think they’re cheap enough. I want to see the VIX go higher to see a real breakout in the stock market.”
Gundlach says the market is currently in a “revaluation phase.” Gundlach said commodities, including gold, which he said exceeded its upside targets earlier this year, offer the best long-term investment opportunities.
“I really think I still want to be in commodities for the long term and I still want to have a position in gold… …I talked about gold going above $4,000 last year. We talked about that when it was well below $4,000. Well, I wasn’t excited enough, I guess, because it went up to almost $5,500.”
But now we’re back to what I thought would be the target for gold as the highlight for the year. But at this level I think it is a very good opportunity to add gold. And to add raw materials.”
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