Billionaire ‘Bond King’ Jeffrey Gundlach Predicts Outsider Asset Class Will Outperform This Year Amid Fed Rate Cuts
Billionaire Jeffrey Gundlach, CEO of DoubleLine Capital, predicts that the Federal Reserve will cut rates soon, which could lead to significant gains in certain asset classes. In a CNBC interview, he noted signs of economic weakening, supported by recent job growth revisions from the Bureau of Labor Statistics. Gundlach anticipates that equities outside the US market will rally following rate cuts, a sentiment echoed by Goldman Sachs, which expects similar FOMO-driven rallies in European stocks.
DoubleLine Capital CEO Jeffrey Gundlach believes the Fed is set to cut rates over the coming months – a move that could trigger breakouts for a particular group of assets.
In an interview with CNBC Television, the billionaire “Bond King” says that a deeper look at the US labor market suggests that the economy is weakening and that the Fed may need to step in to stimulate growth.
In July, the Bureau of Labor Statistics (BLS) revised down May and June job growth by a combined 258,000.
Amid the downward revision, Gundlach highlights that the household survey, which comes from people’s self-reported work status, has been in negative territory for most of the year.
Gundlach predicts that equities trading outside the US stock market will ignite rallies once the Fed begins to cut rates.
Banking giant Goldman Sachs holds a similar view, predicting that a Fed rate cut will trigger FOMO (fear of missing out) rallies in the European stock market.
