Billionaire Jeffrey Gundlach Issues Stock Market Warning, Says One Commodity Presents ‘Very Good Opportunity’

The founder and CEO of investment management firm DoubleLine Capital, Jeffrey Gundlach, says commodities present a better investment opportunity compared to other sectors.

In a new CNBC interview, Gundlach says that based on the Chicago Board Options Exchange’s Volatility Index (VIX), a tool used to measure the level of volatility expected by the stock market, he’s “not terribly enthusiastic” about equities.

According to Gundlach, stocks need to undergo a steeper correction before they can be worth investing in.

“I don’t think they are cheap enough. I want to see the VIX go higher to see a real washout in the stock market.”

Gundlach says that currently the market is in a “revaluation phase.” According to Gundlach, commodities, including gold, which he says overshot his upside targets earlier in the year, present the best investment opportunities over the long term.

“I really think for the long haul, I still want to be in commodities and I still want to have a gold position… …I talked about gold going above $4,000 last year. We talked about that when it was well below $4,000. Well, I was not enthusiastic enough, I guess, because it went up to almost $5,500.

But now we’re back down at about what I thought would be the target for gold as the high point for the year. But at this level, I think it’s a very good opportunity to add to gold. And to add to commodities.”

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