The chief investment officer of asset management firm Guggenheim, Scott Minerd, said the current market offered “the greatest investment opportunity of a generation”. He also warned of some investments he expects to see further declines.
The Guggenheim’s Scott Minerd talks about “the greatest investment opportunity of a generation”
Guggenheim Partners chief investment officer (CIO), Scott Minerd, shared what he thinks is the best investment under current market and economic conditions in a series of tweets on Monday.
Minerd is also Chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. Guggenheim Investments has approximately $325 billion in assets under management across fixed income, equity and alternative strategies.
The Guggenheim CIO wrote:
Today’s market offered perhaps the greatest investment opportunity of a generation: good corporate bonds traded in the 1980s.
“The downside is they pay at par, the upside is they hand over the keys,” he added.
Noting that “investors should look to otherwise good corporate bonds issued at much lower rates that have traded lower,” Minerd warned:
With stocks vulnerable to further declines, traditional private equity is the worst place to be.
Another high-profile investor who recently recommended the bonds is billionaire Jeffrey Gundlach. He is bearish on the stock market, expecting the S&P 500 to drop 20% by mid-October. “Buy long-dated Treasuries,” he advised, suggesting investors dive into long-dated US debt securities. Gundlach also warned of the risk of deflation.
Others who have warned of deflation in the US economy include Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood. US President Joe Biden is bullish on the economy, however, noting that inflation has not risen for several months.
Recently, JPMorgan advised investors to get into value stocks while Goldman Sachs recommended commodities. Rich Dad Poor Dad author Robert Kiyosaki has warned that Fed rate hikes will destroy the US economy, advising people to invest in “real money”, naming gold, money and bitcoin. He urged investors to get into crypto now, ahead of the biggest crash in global history.
What do you think of the recommendations from Guggenheim CIO Scott Minerd? Let us know in the comments section below.
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