351
138 shares, 351 points

As the Federal Reserve prepares to meet rising inflation, billionaire ‘Bond King’ Jeffrey Gundlach says it’s currently on a ‘recession watch’. DoubleLine CEO Jeffrey Gundlach states that the big red flag to watch in 2022 is how the company will respond to tighter monetary policy in 2022 and shares his gold forecasts. We have prepared the shares of the King of Bonds for the readers ofKriptokoin.com .

According to Jeffrey Gundlach, markets are sending a ‘start paying attention’ signal

Looking at Jeffrey Gundlach, who said, “Inflation pressure is increasing,” quantitative easing and the Fed’s He says it cannot be denied that it is supported by balance sheet expansion. And since that’s gone, it’s unreasonable to think there won’t be any more headwinds for risk assets and ultimately for risk assets in 2022, according to the Bond King, and the signals from the bond market are somewhat similar to the pre-recession period.

Jeffrey Gundlach states that he does not predict an imminent recession, but that the US consumer confidence and yield curve data point to a potential slowdown and comments, “We will be in a recession fit like we haven’t been in the last two years.” Jeffrey Gundlach explains his analysis this way:

It gets to the point where the yield curve begins to illuminate a weaker one ahead. They are not in recession yet, but similar to consumer confidence, they no longer send a “don’t worry, relax” signal. They’re sending a ‘start paying attention’ signal. And we will certainly do so as the year progresses.

“US inflation will be higher than forecast through 2022”

Looking at rising wage growth, the Fed looks ‘well behind the curve’, which explains the final falconry. Jeffrey Gundlach reminds us that every time Fed Chairman Jerome Powell speaks, he becomes more and more hawkish about the need to raise interest rates. How aggressive can the central bank be this year? Evaluating his question, Jeffrey Gundlach predicts rates will rise to 1.5% before bear market and recession pressures begin to weigh on him, emphasizing:

When the next recession comes, the US, in particular, the situation could be very good, especially If it has to reverse course at 1.5%, the Fed will face a challenge as to what to do with the interest rate.

“sdollarser think it will return to 2.5% by the first quarter of 2023. Starting at around 7%, it’s a bit of wishful thinking,” says DoubleLine CEO, adding that inflation will remain high throughout 2022 and above what most people think is prices.

Jeffrey Gundlach, citing the Citi Inflation Surprise Index, said, “We now have an off-the-chart inflation surprise globally. This was one of the impetus for Jerome Powell to change his tone so radically. He said he would do almost whatever it took to get inflation under control.”

Bond King’s view on gold and US dollar

Jeffrey Gundlach’s view on gold and US dollar is unchanged: long-term bullish on yellow metal and long-term bear on dollar. The Bond King says:

On a multi-year outlook, I’m pretty optimistic about gold. Because I’m in a bear position on a multi-year outlook on the dollar.

However, in the near term, Jeffrey Gundlach states that he will remain neutral until the gold market moves significantly. “We went up from $1,180 in gold in September 2018. And gold definitely experienced a lunar padlock from there. We turned neutral at $1,800,” said the CEO of DoubleLine, continuing his assessment as follows:

We did not get the right; It went over $2,000. But you had ample opportunity to re-enter gold at $1,800. Right now, it’s pretty neutral. It hugs, entering into a tighter and tighter streamer formation. So no need to guess. Let the market give in one way or another.

The CEO of DoubleLine also points out that US stocks are getting too expensive compared to the rest of the world, and he’s been betting on European stocks for better performance this year, saying “So the message here for value buyers is pretty clear”.


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138 shares, 351 points

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