Gundlach Says Stocks to Fall Beyond Lows Reached in March

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

The March lows that the S&P 500 Index reached are likely to be surpassed in April as economic uncertainty further riles investors and stocks probably won’t match recent highs for a long time, according to bond manager Jeffrey Gundlach.

“I think we’re going to get something that resembles that panicky feeling again during the month of April,” Gundlach, chief investment officer for DoubleLine Capital, said Tuesday during a webcast on the market and economic impact of the coronavirus pandemic.

The S&P 500 fell 12.5% in March, its worst monthly performance since October 2008. The gauge’s decline ended the longest bull market in history.

The U.S. is likely to follow Japan, Europe and emerging economy stock markets that haven’t rebounded to highs reached more than a decade ago, according to Gundlach.

“It won’t be back to where it was prior for a long time to come,” he said, “particularly on a real basis.”

Gundlach also said it will take time — and sacrifice — for the U.S. economy to eventually grow stronger.

“We will get back to a better place, but it’s just not going to bounce back in a V-shape back to January of 2020,” he said.

Among his other comments:

  • Projections by major banks that the U.S. economy will quickly recover from the coming recession are too optimistic.
  • The current economy resembles a “depression.”
  • U.S. economic and monetary stimulus will probably reach $10 trillion.
  • Unemployment will rise to 10%.
  • The dollar is likely to weaken as U.S. debt mushrooms.

Read more: Trump dusts off infrastructure deals, urges $2 trillion spending

In his prior webcast on March 17, Gundlach said there may be a 90% chance of a U.S. recession this year, the national debt could grow to $30 trillion in two to three years and investors should prepare for “en masse” corporate debt defaults and downgrades. He later attacked government bailouts as plans to backstop “greed and mismanagement,” according to a March 19 Twitter post.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Business Finance – Personal Loans Vs Unsecured Personal Loans

For business owners, it is often the case that it is necessary to seek finance in order to finance their projects. Finance is not...

Crypto Was Meant to Democratize Finance, And It’s Finally About To

With Bitcoin at its helm, cryptocurrency was born with lofty aspirations. Through the revolutionary blockchain technology that powered it, the digital coin was meant...

Democratic Senator: Trump’s executive order on tech would silence the ‘little guy

Sen. Ron Wyden on Tuesday slammed President Donald Trump’s executive order signed last week, which seeks to strip online platforms of liability protections for editing or removing user-generated...

Billie Eilish – A Slight History

With her talent for voicing, she has created a couple of roles for herself and one of those was in the series Private Practice,...

U.S. small firms leave $150 billion in coronavirus stimulus untapped

When the U.S. government first rolled out forgivable loans to small businesses in early April under the Paycheck Protection Program, loan officers at Bank...
Home of Science
Follow me