Jeffrey Gundlach speaking at the 2019 SOHN Conference in New York on May 6th, 2019.
Adam Jeffery | CNBC
DoubleLine Capital CEO Jeffrey Gundlach believes the coronavirus sell-off is not over yet and the market will hit a more “enduring” bottom after taking out the March low.
“The low we hit in the middle of March… I would bet that low will get taken out,” Gundlach said in an investor webcast on Tuesday. “The market has really made it back to a resistance zone … Take out the low of March and then we’ll get a more enduring low.”
The S&P 500 tumbled into a bear market at the fastest pace ever as the coronavirus pandemic caused unprecedented economic uncertainty. The equity benchmark hit a three-year closing low of 2,237.40 on March 23, more than 30% from its record high reached in February.
The so-called bond king compared the current stock rout to the ones in 1929, 2000 and 2007. He said during 1929 sell-off, the market “went sideways” for almost a year and then the economy worsened again.
Gundlach said earlier this month that there’s a 90% chance the United States will enter a recession before the year is over due to the coronavirus pandemic.
DoubleLine had $148 billion in assets under management as of the end of 2019, according to its website.
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