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Tags: gundlach | market | unwind | turbulent

Gundlach: Market Unwind Will Be 'Turbulent,' Not Over in a Few Days

Gundlach: Market Unwind Will Be 'Turbulent,' Not Over in a Few Days
© Dmytro Iatsenko | Dreamstime.com

Wednesday, 07 February 2018 07:45 PM EST

Jeffrey Gundlach, chief executive of Doubleline Capital, said on Wednesday that the "low rate-low volatility" market environment went on for so long that now "the unwind will be turbulent and not over in a couple of days."

Gundlach, who is known as the Wall Street bond king, told Reuters that bitcoin was the "lead horse" of risk assets and its recent plunge has had a cascading effect on other risk assets.

Gundlach had correctly predicted that if the 10-year U.S. Treasury note yield went above 2.63 percent, U.S. stock investors would be spooked.

"Clearly, the market gets shaky when the 10-year hits 2.85 percent," Gundlach said. "Just look at this week, and today. Makes one consider what could be coming if 10s push over 3 and 30s (30-year Treasury bond) over 3.22 percent."

The 10-year yield is currently trading around 2.83 percent. Gundlach said it is "hard to love bonds at even a 3 percent" yield. "Rising interest rates are a problem and the U.S. is in debt and there is massive bond supply," Gundlach said.

Los Angeles-based DoubleLine oversees $118 billion in assets under management, as of December 2017. 

© 2024 Thomson/Reuters. All rights reserved.


InvestingAnalysis
Jeffrey Gundlach, chief executive of Doubleline Capital, said on Wednesday that the "low rate-low volatility" market environment went on for so long that now "the unwind will be turbulent and not over in a couple of days."
gundlach, market, unwind, turbulent
190
2018-45-07
Wednesday, 07 February 2018 07:45 PM
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