TSMC earnings; Oracle analyst meeting; Gold’s new high - what’s moving markets
Investing.com -- Jeffrey Gundlach of DoubleLine Capital has predicted the likelihood of a recession to be between 50% and 60%, a figure considerably higher than popular estimations, as revealed in a recent CNBC interview.
Gundlach has expressed his concern over the potential inflationary impact of tariffs. Despite the Federal Reserve’s target level of 2% inflation, Gundlach finds it difficult to foresee the inflation rate settling at this figure. He also noted that the US economy is currently in a stable state, but suggested that the current conditions may be leading towards quantitative easing.
Gundlach pointed out the market’s favorable response to the Federal Reserve’s plan for two interest rate cuts slated for 2025. He anticipates the first of these cuts to occur in June or July.
The DoubleLine Capital founder also highlighted the strong performance of gold, Bitcoin, and other real assets. He suggested that investors whose portfolios are primarily dollar-based should consider diversifying away from the US.
Gundlach commented on Federal Reserve Chair Powell’s defensive stance during a recent discussion. He also advised investors to have already upgraded their portfolios, and expressed his lack of enthusiasm for 30-year treasuries. He warned that reduced government spending could slow the pace of economic growth.
Gundlach also shared his view that the Treasury bond market rally has already taken place, and reiterated his concern over the potential inflationary effects of tariffs.
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