Sees 10 year near lows
DoubleLine Capitals Jeffrey Gundlach is on CNBC
- The Fed is going to cut rates again. Maybe at the March meeting.
- the Fed was justified in emergency rate cut
- The US dollar is going to get weaker
- Sees 10 year yields near lows. You are better off in cash then owning 10 year treasuries at this point
- Short-term rates heading toward 0%
- Short-term economic growth will be hit
- The thing you are supposed to own is gold. Expects gold to go higher. Turns bullish on gold in the summer of 2018
- Says the initial claims will be a key data point to eye.
- The 5 year MA of initial claims is 243,000. If goes above, put a fork in it.
- Also watching consumer confidence.
- The JOLT figures have been very weak and may be foreshadowing an uptick in initial claims
- Credit market has been lulled to sleep.
- Fiscal stimulus possible, money "wired" to public
- Thinks Biden is unelectable
- Virus area worse than whatever consensus is
- Fed will go to negative rates
- Fed will do large-scale asset purchases to help
Gundlachs comments are not all that positive.
