‘Bond King’ warns stock market could hit new lows in ‘social unrest’

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“I am certainly in the camp that we did not get out of the woods. … I think a new depression test is very plausible. “

These are the gloomy prospects that Jeffrey Gundlach, CEO of DoubleLine, delivered to CNBC on Monday as the stock market staged a strong recovery from what he thought was overly optimistic.
“People don’t understand the magnitude of the … social unrest … that is going to happen,” said Gundlach. “We have lost all the jobs we have created since the lowest in 2009.”

With that in mind, he revealed that he had bypassed the S&P at 2863.
“At this level, I think the pros and cons are very small,” he said. “I don’t think it could reach 3,000, but it is possible. I think the drop easily down or beyond. The S&P hit a low of 2,192 on March 23 before rebounding by around 30% as the Fed rolled out its historic stimulus.

Earlier this month, Gundlach warned of increased sales in a webcast, with a “lasting low” on the way to the “dysfunctional” stock market.
At the last check, the S&P 500 index
SPX,
+ 1.47%

finished nearly 42 points or 1.5% on Monday as the Dow Jones Industrial Average
DJIA,
+ 1.50%

and the high-tech Nasdaq composite
COMP,
+ 1.10%

also ended the session firmly in green territory.
Watch the interview:

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