(TimeOut News) DoubleLine Funds chief Jeffrey Gundlach warns to stay prepared for a significant increase in headline inflation, sees inflation spiking 3% soon.
Gundlach sees inflation over 3% for a couple of months this summer and said, “In my opinion, not only is the Fed unconcerned by increased inflation, they'll welcome it.”
He is very bullish on commodities in the longer term and very negative on the dollar longer term. Gundlach turned neutral on gold when it was at ~$1,800 per ounce.
Now he sees gold likely bouncing back in the longer term "because the selloff has been pretty powerful."
In the investment-grade corporate bond market, the downgrade cycle appears to be over, he said. "The upgrade cycle has probably started to get underway."
In a recent tweet, he said, “The price of gold is down 11% over the past twelve months. The S&P 500 is up 27% over the past twelve months. Bitcoin is up 467% over the past twelve months. Great dispersions often precede great reversions. We shall see.”
Key takeaways from his recent podcast
• Sees significant increase in headline inflation
• Inflation will be over 3 per cent for a couple of months year-over-year in June and July
• Fed unconcerned by increased inflation
• Negative interest rates will make the federal debt easier to manage
• Very bullish on commodities in the longer term
• Very negative on the dollar longer term
• Gold likely to bounce back in the longer term
• Gold selloff has been pretty powerful
• See the VIX going over 100 during the next downturn
• Downgrade cycle investment-grade corporate bond market is over
• Stock market decline could be more than 10 per cent or 15 per cent
