Jeffrey Gundlach is the CEO of DoubleLine.
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Jeff Gundlach, the billionaire "Bond King" thinks investing in China is not a good idea right now as tensions with the US persist and Beijing continues to crack down on tech giants.
He told Yahoo Finance's Brian Sozzi in an interview that China is uninvestable.
I have never invested in China. I don't trust the data. I don't trust the relationship between the United States and China.
I believe that investments in China could be taken away. There's a chance of that.
The DoubleLine Capital CEO and founder's comments come as a tech "cold war" between Beijing and the Biden administration plays out. The tensions have been a problem for Chinese tech stocks, and analysts expect them to be a problem in 2022.
Didi's decision to delist in the US came after months of Chinese regulatory scrutiny, which added to the growing tensions between the powerhouse countries.
Beijing's powerful internet regulator said platform providers will face new rules on overseas stock-market listings in February.
The US Securities and Exchange Commission said in July that it would stop processing IPO listings from Chinese companies until they met new disclosure requirements. Investment banks scrambled to get Chinese IPOs to Hong Kong.
Gundlach said that growth in China has been stronger than in the US during the Pandemic, and he shared what he thinks will happen if China expands its military.
He said that the economy of the United States gets bigger than that of theirs. The US military is smaller than the military of the other countries. At least as far as I know, they've got these hypersonic weapons that are far ahead of ours.
Having the largest military and economy means you should be at the table of reserve currency. That has been a goal of China for a long time.
The billionaire investor, known as the "Bond King" for his successful calls in that market, has warned before that the US dollar could lose its reserve-currency status.
He said in the interview that the yield curve is signaling a recession and the dollar is overvalued.
The US dollar reserve currency situation is getting closer to an end game, he said. "That's going to be the game change, when I say the next bail out is going to be the one that breaks the camel's back." I think it will take the dollar down.
I think we're going to see dollar weakness in the next recession.
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Business Insider has an original article.
