Billionaire 'Bond King' Jeff Gundlach rings the inflation alarm, predicts a weaker dollar, and warns bitcoin could tumble in a new interview. Here are the 8 best quotes.

Jeffrey Gundlach. CNBC / Getty Images
Jeff Gundlach hit the inflation alert and predicted a weaker US dollar.
Billionaire Bond King warned that Bitcoin could plunge in price after it hit a record high.
Gundlach presented an optimistic outlook for raw materials and emerging markets.
Billionaire investor Jeff Gundlach warned of a decline in the dollar in a recent CNBC interview, predicted stubborn inflation and suggested that Bitcoin could fall.
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The head of DoubleLine Capital - whose nickname is "Bond King" - also promoted commodities, trumpeted emerging markets and warned equity investors before the Federal Reserve cuts economic support.
Here are the 8 best quotes from Gundlach from the interview, which have been slightly edited and condensed for clarity:
1. "It is almost certain that we will have sustained high inflation. We do not believe that inflation will go below 4% in 2022." - Gundlach named upward pressure on wages and rising housing costs as the main drivers of further inflation.
2. "The negative interest rates we have today are viciously unattractive. But they support the idea that stocks are still not overvalued versus government bonds."
3. "A little less okay than in July. As the Fed is slowly tapering, it becomes a more cautious situation." - Gundlach describes how comfortably he is currently holding stocks.
4. "The many trillion dollar government 'money spray' is responsible for all of our recent economic advancement. Without the stimulus and without the consumers buying imports with cash from the money spray, we really have had no economic growth."
5. "The dollar is going to fall." - Gundlach underlined the strong historical correlation between widening budget and trade deficits and a negative dollar trend.
6. "It is not foolish to believe that, given the right circumstances, the emerging economies will outperform the US by 100 percentage points. Over a period of several years, we expect this to happen." - Gundlach found that emerging markets are less than half the price of the S&P 500 using the Shiller-CAPE ratio.
7. "Commodities are incredibly strong. But I would be wildly optimistic about the fact that they haven't seen a correction. They're still quite cheap versus the S&P 500 in the long run. If the worm turns - commodities of seems to be at a very cheap level - it is not foolish to believe that commodities could do hundreds of percentage points better. " - Gundlach suggested that investors put 30 to 35% of their portfolios in commodities and other physical assets like real estate and gold.
8. “The Bitcoin chart is more frightening today than it was in July. We had a double high at $ 60,000 plus, we basically had a blow-off top. I really think that many things this week crescendo even oil. Everything that has worked for you in the past few weeks I think it's time to fade away. "
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