- Jeffrey Gundlach believes the U.S. stock market can’t diverge from global equity markets forever.
- “I said [before] … if the global stock [market] is going to take out the low and put in a new low, something bad must be happening. I don’t think the U.S. can hold in there,” he said Thursday on CNBC’s “Fast Money Halftime Report.”
DoubleLine’s Gundlach: Rates are a big factor in this market sell-off from CNBC.
Jeffrey Gundlach believes the U.S. stock market can’t diverge from global equity markets forever.
The bond investor noted the S&P 500 was strangely outperforming the rest of the world’s equity markets since the summer into this month.
“I said [before] … if the global stock [market] is going to take out the low and put in a new low, something bad must be happening. I don’t think the U.S. can hold in there,” he said Thursday on CNBC’s “Fast Money Halftime Report.” “Well what happened as rates broke to the upside … the global stock market ex-U.S. did take a new leg down and did go to a 12-month low. And it’s interesting the S&P 500 did what I said. … That is join the global stock market on the way down.”
Relative performance of S&P 500 (blue) versus Rest of World ex-U.S. (green) YTD