Gundlach - Two Dangers for Equity Markets
Money and Finance

Gundlach - Two Dangers for Equity Markets


Don’t buy stocks – for real, this time. That was the message Jeffrey Gundlach delivered to investors last Tuesday.

Among riskier asset classes, only equities have performed well since February 14, the date of Gundlach’s previous remarks to investors, during which he advised investors in his Doubleline funds to avoid those assets – Including equities.  In his most recent conference call with investors last Tuesday, he reiterated that forecast, this time singling out equities in particular.

“I really think we are not going to be making money on stocks bought at this level,” he said.

Gundlach identified two “triggers” that could set off a decline in stock prices – a worsening of the fiscal crisis in Europe and the ongoing inability to confront debt problems here at home, regardless of who is elected president this fall.

Gundlach, who is the founder and chief investment officer of DoubleLine funds, titled his remarks to investors “To QE3 or not QE3 – That is the Question.”




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