Federal Debt on a Suicide Mission, Says Gundlach

In a recent webcast, the founder and CIO of DoubleLine Capital says the federal deficit is putting the U.S. on a “suicide mission.” This according to an article in Advisor Perspectives. Jeffrey Gundlach warned that “The federal debt is exploding,” citing Congressional budget Office projections showing that by the year 2030, the country’s federal debt-to-GDP  ratio will steadily rise from its current level of 80% to 125%. To see such a deficit expansion so late in… Read More

Gundlach’s Market Outlook

According to Jeffrey Gundlach, although the S&P 500 will post a negative return in 2018, there is no recession in the offing. This according to a recent Barron’s article highlighting takeaways from the DoubleLine CEO’s presentation at the Barron’s Top Advisor conference earlier this month. The article provides charts from Gundlach’s presentation that reflect the following: Central banks are scaling back their bond purchases, and net purchases by both the Fed and the ECB are… Read More

Jeffrey Gundlach Says S&P 500 Will be Down in 2018

Billionaire bond manager Jeffrey Gundlach says the S&P 500 will be down at the end of this year, and doubts the long-term value of bitcoin. This according to a recent Bloomberg article. During his annual “Just Markets” webcast earlier this month, the chief investment officer of DoubleLine Capital argued, “All recession indicators are flashing no recession, which means it’s priced in. This is why I say S&P 500 [will end] down after a pretty decent… Read More

Four Top Fund Managers Advise Caution in 2018

A recent Bloomberg article shares market insights from six of the world’s top fund managers, four of which are “asking their clients to be cautious in 2018.” The four with cautious outlooks are: Scott Minerd, chief investment officer at Guggenheim Partners (manages $240 billion), is betting that the next recession is most likely going to occur in late 2019 to mid-2020. Minerd’s firm argues that current macroeconomic conditions are similar to those that existed 18-24 months prior… Read More

Gundlach Says Now is the Time for Caution

In a phone interview with Bloomberg earlier this month, Jeffrey Gundlach said, “This is not the time period where you say, ‘I can buy anything and not worry about the risk of it’ The time to do that was 18 months ago.” The DoubleLine Capital LP co-founder and CEO, the article says, “sees too much of a good thing—and he wants no part of it.” He views risky assets such as junk bonds and emerging-market… Read More

Master Investors Marks, Dalio & Gundlach Issue Cautionary Views on Markets

By John P. Reese — The waning days of August leave many parents looking forward to the start of school and many investors bracing for September, the month that is historically the worst of the calendar year for stocks. Add the increasing uncertainty coming out of Washington and stock valuations that look increasingly overheated, and it’s enough for a few prominent investors to warn that a pullback is probably on its way. That may not… Read More

Gundlach on Bond Yields and the Broader Market

The market would be hurt if yields on 10-year Treasuries climbed to 3 percent or higher next year, says Jeffrey Gundlach as reported in Bloomberg. The DoubleLine Capital CIO has called president-elect Trump’s policies “bond unfriendly” and says that Treasury yields above 3 percent (benchmark Treasuries are currently trading below 2.5 percent) “would start to have a real impact on market liquidity in corporate bonds and junk bonds.” Gundlach says that he will be looking… Read More

DoubleLine’s Gundlach Identifies Downward Pressures, Warns Against Fed Rate Hike

Jeffrey Gundlach, CEO of DoubleLine Capital, delivered a fairly grim assessment in a recent webcast, Financial Advisor reports. Characterizing the recent bump in stocks as a bear-market rally, Gundlach pointed to a combination of factors that will put downward pressure on markets, expressed concern about the impact a Fed rate increase would have, and described positive market sentiment as perplexing. He identified valuation as one problem: “The S&P charts look horrific,” he said, “when you… Read More