“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.”
“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
finished nearly 42 points or 1.5% on Monday as the Dow Jones Industrial Average
and the high-tech Nasdaq composite
also ended the session firmly in green territory.
Watch the interview: