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2022 might be the year of recession says Jeff Gundlach

Its been over a decade since we have seen a real recession. In 2020, at the start of the COVID-19 pandemic, we did see stock markets crash, but the recovery was fast and took the markets to much higher levels. 2021 was a good year both for the stock markets and cryptocurrencies. But 2022 might be the year of recession, says Jeff Gundlach, CEO of Doubleline Capital. Jeff also thinks that Bitcoin could crash to $25,000 and advises against buying it now.

Jeff Gundlach on recession

Jeff expects that the later part of 2022 might see a recession, and it will pull down Bitcoin as well. He shared his thoughts in a recent interview with Yahoo finance. Jeff is a well-known personality and has also been named under the fifty most influential people in 2012, 2015, and 2016. The first question asked in the interview was whether Jeff thinks we will see a recession in 2023. To this, he replied that the bond markets are already showing signs of it and expecting the recession to hit by 2023 is not a far sight.

2022 might be the year of recession says Jeff Gundlach

The falling interest rates have been one of the reasons for rising inflation, and this has pushed the feds to increase interest rates. There are enough signs that suggest that a recession might be near. Jeff expects that the feds will have to increase the inflation rates 4 times this year which is gonna spook the people. And this is what will bring on the recession.

The inflation rate in 2018 was 1.9%, and the interest rates then were 2.5%. At present, we are seeing a 7% inflation rate, but the feds plan suggests that they want to raise interest rates to just 2% to combat it. So, it is unlikely that such a thing will help. Instead, the government will be forced to increase the rates multiple times in a single year.

Bitcoin

Jeff is not a big Bitcoin guy. He thinks it is for speculators and advises people from buying it, at least right now. He thinks that buying it at $25,000 would be a better option maybe. Since he has never owned any Bitcoin, he didn’t comment much on the same. Jeff did add that he thinks BTC is for momentum investors, and he isn’t one of those.


What are your thoughts, as Jeff Gundlach says, that 2022 might be the year of recession? And do you think the feds will increase interest rates multiple times this year? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

Also Read: Strike launches Bitcoin payment services in Argentina amidst hyperinflation.

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