Speaking on CNBC
Jeffrey Gundlach is on CNBC . His thoughts are often eyed by the market:
- Rates a big part of selloff. When the yields went above 3.25% in 30 year that helped
- Divergence between US, foreign stocks unusual
- hard for the US to rally if world stocks fall
- S&P index joined the global markets on the way down
- Some investors might be starting to take profits thinking about year-end
- Expects the recent selloff to be in the middle of the move
- It would not be hard to see the 30 year ago to 4%. The 10 year could go to 3.5%-3.6%
- People are comfortable being short the bond because Fed is still tightening, and because the number of bonds that are coming to us will get bigger.
- 2.25 trillion dollars of new debt in the US.
- I don't think the Fed is on the wrong path.
- The Fed was far too dovish for far to long.
- Trump is crazy like a fox. Does not want to take the blame if the market goes down. Blame the Fed instead.
- The Fed will keep tightening as long as inflation stays above 2%
- It is too premature to say the data is turning down.
- Tariffs in the short term is clear that you will be raising prices.
- Strange thing about administration is they crave tax cuts but at the same time they are rising the taxes through tariffs.
- Sees core CPI moving to the high 2's% in the future.
- Cost of servicing the deficit will move higher as rates continue to go higher as maturing debt is replaced at higher rates.
- If rates to 4%, then equities go lower.
- Increased the deficit by 1 1/2% of GDP. So not surprising the GDP went up by an equal amount.
Overall, the "Bond King" is bearish on bonds, bearish on stocks. Bearish on deficits and see's inflation moving higher.
