Bond king Jeffrey Gundlach (C.E.O of Dobulline Capital) still sees a U.S. recession coming.
Gundlach, regarded as one of the most influential people in financial markets, has been off about the precise timing of a recession.
Jeffrey Gundlach, Chief Executive of investment-management company DoubleLine Capital, is continuing to hold on to a view that he’s had since at least late last year — that the world’s largest economy will likely experience a recession.
According to him it is hard to say whether it will happen this year. But he said “sure” to the idea that a recession could come in either 2024 or 2025.
Elevated inflation, higher interest rates and rising rates of household debt are likely to keep weighing on the economy this year.
In the meantime, the New York Fed’s Empire State factory gauge, released last Wednesday, weakened further in May, falling to negative 15.6. It was the sixth straight reading in a row below zero, which is a sign of deteriorating conditions.
Gundlach said in the interview. “I mean … a month ago, if you subdivide the economy into six or seven major sectors, all of them were experiencing positive growth. All of a sudden, in those same numbers this year, more are negative than positive.
“And the positive ones are less positive,” he continued. “So, yes, I think that the lifestyle adjustment that was allowed by all that money printing got people to a lifestyle that they decided that they weren’t getting checks from the government, but they were willing to put it on a credit card. And those credit-card bills are really starting to add up.”
