The best returns come when markets are depressed as they are now, but there will be more pain for 6-12 months, billionaire David Rubenstein says

Carlyle Group co-founder and co-founder David Rubenstein.
  • Billionaire David Rubenstein thinks the market downswing is a buying opportunity. 
  • Still, he said he expects more turmoil in the next six to 12 months. 
  • The Carlyle co-founder told CNBC that investors shouldn't exit markets too soon. 

Now isn't the time for investors to run for the door despite worrying signs of an prolonged downturn in the market, according to David Rubenstein. 

The Carlyle Group co-founder told CNBC on Thursday that when markets show signs of depression like today, there's an opportunity to step in and yield a strong return over the long term. 

In other words, buy the dip and hold on. 

"What Warren Buffet and others have done historically is buy when the markets are cheap or when there's blood in the streets," he said. "Right now is not a time to panic and rush out of the markets, in my view."

He added that while some traders are growing anxious, "the best returns probably come from times when markets are depressed like this." 

Rubenstein cautioned that market volatility will most likely continue into the next six to 12 months, and said "if you go in and stay in now, you're probably going to do pretty well."

On Wednesday, the US Federal Reserve hiked benchmark interest rates by an additional 75 basis points, a move that Wall Street had largely priced in. Central bank chair Jerome Powell reiterated that the Fed's main goal is taming inflation, and that more steep rate hikes were likely on the horizon. 

Read the original article on Business Insider

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