‘Bond King’ warns the stock market could hit new lows amid ‘social unease’

- Advertisement -

- Advertisement -
- Advertisement -
- Advertisement -

‘I’m certainly in the camp that we are not out of the woods… I think a retest of the low is very plausible.’

That’s the gloomy outlook Jeffrey Gundlach, CEO of DoubleLine, delivered to CNBC on Monday as the stock market staged a strong rally in the face of what he believes is too much optimism.

“People don’t understand the magnitude of… social unease… that’s going to happen,” Gundlach explained. “We’ve lost every single job that we created since the bottom in 2009.”

With that in mind, he revealed that he just shorted the S&P at 2,863.

“At this level, I think the upside and downside is very poor,” he said. “I don’t think it could make it to 3,000, but it could. I think downside easily to the lows or beyond.” The S&P hit a low of 2,192 on March 23 before rebounding about 30% as the Fed rolled out its historic stimulus measures.

Earlier this month, Gundlach in a webcast warned of more selling, with a “more enduring low” on the way for the “dysfunctional” stock market.

At last check, the S&P 500 index SPX, 1.55% was up 43 points to 2,880, while the Dow Jones Industrial Average DJIA, 1.58% and the tech-heavy Nasdaq COMP, 1.14% were also firmly in green territory.

Watch the interview:

Home of Science
Follow me

Latest posts by Home of Science (see all)
- Advertisement -

Discover

Sponsor

Latest

What To Remember When You Are Trying To Dress Business Casual

The idea of being business casual is to dress in clothing that is more casual and blends into the environment. In other words, it...

Mesothelioma Causes

If you are suffering from Mesothelioma or are aware of someone who has, then there are some Mesothelioma Causes that you should be aware...

Mayor of city famed for defunding police says abolishing police is not the solution

In the latest signal of reform to come from Minneapolis following the killing of George Floyd, the city’s police chief announced Wednesday that he...

What Is So Great About Billie Eilish?

Billie Eilish is an experienced Canadian TV presenter and journalist who present at CBC Television. Her first season as a presenter on CBC Television...

“Bad Luck” by Billie Eilish

Billie Eilish is a debut author with several successful books under her belt. It's not a surprise that she has attracted a good amount...
Home of Science
Follow me
Latest posts by Home of Science (see all)