Jeffrey Gundlach the famed American inventor and business mogul believes that the global stock market is signalling 'something bad' is happening.
Why would anyone listen?
He has the pedigree and experience to make people sit up and listen.
Gundlach was formerly the head of the $9.3 billion TCW Total Return Bond Fund, where he finished in the top 2% of all funds invested in intermediate-term bonds for the 10 years that ended prior to his departure. He was fired by TCW in 2009.
In 2009, shortly after his firing from TCW, Gundlach founded Doubleline, along with Philip Barach and 14 other members of Gundlach's senior staff from TCW. Barach was Gundlach's co-manager of the $12 Billion TCW Total Return bond fund. In a February 2011 cover story, Barron's called him the "King of Bonds."
Jeffrey Gundlach is of the opinion that the U.S. stock market will not be able to continue to diverge from global equity markets in the long-term.
"I said [before] ... if the global stock [market] is going to take out the low and put in a new low, something bad must be happening. I don't think the U.S. can hold in there," he said Thursday on CNBC's "Fast Money Halftime Report."
He also made a point that the S&P 500 was strangely outperforming the rest of the world's equity markets since the summer into this month.
He went on to say:
"Well, what happened as rates broke to the upside ... the global stock market ex-U.S. did take a new leg down and did go to a 12-month low. And it's interesting the S&P 500 did what I said. ... That joins the global stock market on the way down."
On Wednesday, the Dow Jones Industrial Average declined by more than 800 points and the S&P 500 fell by 3.3 per cent as investors showed their concerns with the negative effects of the rising interest rate environment.
The sell-off came a day after the 10-year note yield traded above 3.25 per cent hitting its highest level since 2011. This occurred about a week after Federal Reserve Chairman Jerome Powell said in an interview with PBS that the central bank is a "long way" from getting rates to neutral, which pointed to a possibly more aggressive path for rate hikes.
The iShares MSCI ACWI ex U.S. ETF, which tracks the performance of a rest of the world ex-U.S. equity index, is down 10 per cent this year through Wednesday versus the S&P 500's 4 per cent gain.
Gundlach is founder and CEO of DoubleLine. He is known for his investment acumen in the fixed income markets. DoubleLine has assets under management of more than $120 billion, according to its website.
Source: www.ecocropsinternational.com
Why would anyone listen?
He has the pedigree and experience to make people sit up and listen.
Gundlach was formerly the head of the $9.3 billion TCW Total Return Bond Fund, where he finished in the top 2% of all funds invested in intermediate-term bonds for the 10 years that ended prior to his departure. He was fired by TCW in 2009.
In 2009, shortly after his firing from TCW, Gundlach founded Doubleline, along with Philip Barach and 14 other members of Gundlach's senior staff from TCW. Barach was Gundlach's co-manager of the $12 Billion TCW Total Return bond fund. In a February 2011 cover story, Barron's called him the "King of Bonds."
Jeffrey Gundlach is of the opinion that the U.S. stock market will not be able to continue to diverge from global equity markets in the long-term.
"I said [before] ... if the global stock [market] is going to take out the low and put in a new low, something bad must be happening. I don't think the U.S. can hold in there," he said Thursday on CNBC's "Fast Money Halftime Report."
He also made a point that the S&P 500 was strangely outperforming the rest of the world's equity markets since the summer into this month.
He went on to say:
"Well, what happened as rates broke to the upside ... the global stock market ex-U.S. did take a new leg down and did go to a 12-month low. And it's interesting the S&P 500 did what I said. ... That joins the global stock market on the way down."
On Wednesday, the Dow Jones Industrial Average declined by more than 800 points and the S&P 500 fell by 3.3 per cent as investors showed their concerns with the negative effects of the rising interest rate environment.
The sell-off came a day after the 10-year note yield traded above 3.25 per cent hitting its highest level since 2011. This occurred about a week after Federal Reserve Chairman Jerome Powell said in an interview with PBS that the central bank is a "long way" from getting rates to neutral, which pointed to a possibly more aggressive path for rate hikes.
The iShares MSCI ACWI ex U.S. ETF, which tracks the performance of a rest of the world ex-U.S. equity index, is down 10 per cent this year through Wednesday versus the S&P 500's 4 per cent gain.
Gundlach is founder and CEO of DoubleLine. He is known for his investment acumen in the fixed income markets. DoubleLine has assets under management of more than $120 billion, according to its website.
Source: www.ecocropsinternational.com
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