Guggenheim's Scott Minerd Discusses 'Greatest Investing Opportunity' — Warns Stocks Vulnerable to Further Declines

The chief investment officer of asset management firm Guggenheim, Scott Minerd, says that the current market has delivered “the greatest investing opportunity of a generation.” He also warned about some investments that he expects to decline further.

Guggenheim’s Scott Minerd on ‘the Greatest Investing Opportunity of a Generation’

The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, shared what he believes to be the best investment under the current market and economic conditions in a series of tweets Monday.

Minerd is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. Guggenheim Investments has about $325 billion in assets under management across fixed income, equity, and alternative strategies.

The Guggenheim CIO wrote:

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,” he added.

Noting that “Investors should look to bonds of otherwise good companies issued at much lower rates that have traded down,” Minerd cautioned:

With stocks vulnerable to further declines, traditional private equity is the worst place to be.

Another renowned investor who recently recommended bonds is billionaire Jeffrey Gundlach. He’s bearish on the equity market, expecting that the S&P 500 to fall 20% by mid-October. “Buy long-term Treasurys,” he advised, suggesting that investors dive into long-term U.S. debt securities. Gundlach also warned about the risk of deflation.

Others who have warned about 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 spiked 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 U.S. economy, advising people to invest in “real money,” naming gold, silver, and bitcoin. He has urged investors to get into crypto now, ahead of the biggest crash in world history.