Gundlach: Don’t Call It a Comeback, Stocks Never Left Bear Market

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via CNBC:

  • “The stock market was and still is in a bear market,” the founder and chief executive officer of Doubleline Capital said in an investor webcast on Tuesday.

  • Gundlach said stocks could go negative again in 2019.

  • He credited the market rebound to the “180-degree turn” from the Federal Reserve.

After a stellar rebound, Jeffrey Gundlach still thinks stocks are in a bear market.

“The stock market was and still is in a bear market,” the founder and chief executive officer of Doubleline Capital said in an investor webcast on Tuesday. He also said stocks could go negative again in 2019.

The market dipped into bear market territory on Christmas Eve when it dropped dropping 20 percent from its 52-week high. Stocks have since staged a strong comeback from the massive December sell-off with the S&P 500gaining nearly 19 percent from Christmas Eve low and more than 11 percent year to date.

Gundlach credited the market rebound to the “180-degree turn” from the Federal Reserve. Fed Chairman Jerome Powell recently signaled a “patient” approach to rate hikes and said the central bank is prepared to ‘adjust’ balance sheet unwind if needed. The Fed chief rattled investors in December when he described the balance sheet roll-off as being on “autopilot.”

See also  DoubleLine’s Gundlach Says the U.S. Dollar Is ‘Doomed’ Because of the Country’s Rising Deficits. Inflation Today Reminds Him of the 1970s
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