Jeffrey Gundlach, CEO and CIO of DoubleLine Capital, says “There’s going to be another wave down in risk assets and it’s happening globally.” He cites a recent forecast downgrade by the International Monetary Fund as confirmation, and notes “[j]unk bonds are at a four-year low. Emerging markets are at a six-year low and commodities are at a multi-year low – same level as in 1995.”

“The reason markets aren’t going lower is people are holding and hoping,” Gundlach says. “The market bottoms out when people are selling and sold out,” he continued. “I don’t think you’ve seen real selling in risk assets broadly.” He has maintained since May that the Fed will not raise rates this year, and he says the environment feels similar to 2007 (just before the 2008 financial crisis).