Guggenheim asset management firm CIO Scott Minerd says the current market offers “the best investment opportunity in a generation“. He also cautioned against certain investments that he expects to continue to decline.
Current market has delivered perhaps the greatest investing opportunity of a generation: #Bonds of good companies trading in the 80s. Downside is they pay off at par, upside is they hand over the keys.
– Scott Minerd (@ScottMinerd) September 19, 2022
Scott Minerd of Guggenheim on “the best investment opportunity of a generation“
Guggenheim Partners Chief Investment Officer (CIO) Scott Minerd shared what he thinks is the best investment in the current economic and market conditions in a series of tweets Monday.
Connecting current equity market valuations, inflation, the macro and monetary backdrop, and weak seasonals suggests a 20% drop in stocks by mid-October. @ScottWapnerCNBC. https://t.co/16H0X5xKuT pic.twitter.com/E06nqDmAhI
– Scott Minerd (@ScottMinerd) September 9, 2022
Scott Minerd is also president of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. Guggenheim Investments manages approximately $325 billion in assets across fixed income, equity and alternative strategies.
Guggenheim’s CIO wrote:
Today’s market may have offered the best investment opportunity in a generation: Good corporate bonds trading in the 1980s.
“The disadvantage is that they pay back at par, the advantage is that they hand over the keys“, he added.
Noting that “investors should look to bonds of other good companies issued at much lower rates that have traded down“, Scott Minerd cautioned:
With stocks vulnerable to further declines, traditional private equity is the worst place to be.
Another prominent investor who has recently recommended bonds is billionaire Jeffrey Gundlach. He is pessimistic about the stock market and expects the S&P 500 to fall 20% by mid-October. “Buy Treasurys for the long term” he advised, suggesting investors dive into long-term U.S. debt securities. Jeffrey Gundlach also warned of the risk of deflation.
Others who have warned of deflation in the U.S. economy include Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood. U.S. President Joe Biden, however, is optimistic about the economy, noting that inflation has not peaked in several months.
Recently, JPMorgan advised investors to look to yield stocks, while Goldman Sachs recommended commodities. Robert Kiyosaki, author of Rich Dad Poor Dadwarned that the Fed’s rate hikes would destroy the U.S. economy, advising people to invest in “real money“, namely gold, silver and bitcoin. He urged investors to get into crypto-currencies now, before the biggest crash in world history.