Gundlach: “Something Bad Is Happening”

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  • 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.

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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

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www.cnbc.com/2018/10/11/gundlach-says-the-global-stock-market-is-signaling-something-bad-is-happening.html

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