DoubleLine Capital CEO Jeffrey Gundlach said Monday that he “absolutely” believes the S&P 500 will go below the lows that the index hit early in 2018.
“I’m pretty sure this is a bear market,” Gundlach told Scott Wapner on CNBC’s “Halftime Report.”
“We’ve had pretty much all of the variables which characterize a bear market,” Gundlach added.
The S&P 500 is not in a bear market yet, down 11 percent from its record high reached in September. Wall Street traditionally defines a bear market as a decline of 20 percent or more.
Gundlach predicted in March that the closely-watched 10-year Treasury yield would hit 3 percent and send stocks tumbling. His call came true a few months ago, as October was one of the worst months for U.S. stocks since the financial crisis.
Gundlach revealed in February that he was betting against Facebook shares. He said his short was due to falling public perceptions of the company. Facebook’s stock is down more than 13 percent since Gundlach’s call.
He also in 2017 envisioned bitcoin cratering, saying that “if you short bitcoin today, you’ll make money.” At the time, bitcoin traded at about $16,000. The cryptocurrency now trades at about $3,400, losing about 82 percent of its value this year.
DoubleLine has more than $120 billion in assets under management, according to the firm’s website.
This story is developing. Please check back for updates.
Read more from source here…