Gundlach, a respected prognosticator across Wall Street, said in his webcast last week that it looks like the U.S. stock market is “going to break down” amid a rising deficit, signs of an economic slowdown and an ambitious Federal Reserve.
Gundlach noted that consumer confidence readings lately versus economists’ expectations are falling short by a magnitude and consistency last seen prior to the recession in 2007. This continued disappointment could be a sign of economic weakness ahead.
Gundlach made several bold calls on the financial markets this year which came true, including a decline in the S&P 500 after the 10-year yield hits 3 percent, Facebook’s bear market and bitcoin’s price cratering.
DoubleLine’s assets under management totaled more than $120 billion as of June 30.