From its all-time high on February 19, the S&P 500 hit a bottom of 2,237 on March 23. But it will go lower this year, according to Jeffrey Gundlach, and only then will he buy stocks.

Gundlach spoke to investors via a webcast, which he titled “A Tale of Two Sinks.” Slides from that webcast are available here. Gundlach is the founder and chairman of Los Angeles-based DoubleLine Capital.

Compared with prior market crashes, Gundlach said, this one most resembles 1929. Typically the market goes to a “crash low,” he said, and then there is a snap back, followed by another move down and then an enduring low.

“The low from mid-March will get taken out,” he said, and he will be interested in buying at that time.

He compared U.S. equities to Japan in 1989, Europe in 1999 and the emerging markets in 2006. Like those markets, “the U.S. will be a poor performer and it will not get back to its high on a real basis,” Gundlach said.

The economy faces deflation. The drop in oil and copper prices has “devastated U.S. industries,” he said. Based on historical patterns of commodity prices, Gundlach said, there is no hope to think the economy will rebound in Q3.

Will the stimulus cause inflation? It is like a titration exercise in chemistry, Gundlach said, where you drop a colored liquid slowly into a jar until the correct color is observed. “We’ve been doing titration by drip with QE,” he said. “Now we are letting it rip. Sending money people directly is the easiest way to create inflation.”