Gundlach’s Bearish Outlook
Jeffrey Gundlach, the CEO of DoubleLine Capital and known as the “Bond King,” is warning of a downturn in the US stock market. He believes the ongoing trade tensions and high import tariffs imposed by the US will continue to create uncertainty. In a recent CNBC interview, he predicted a significant drop in the S&P 500 index.
S&P 500 Price Target
Gundlach expects the S&P 500 to fall to around 4,500. This represents a roughly 14% drop from its current level (around 5,222 at the time of writing). He advises investors to adopt a defensive strategy and hold onto cash until the market shows signs of stabilizing.
Tariffs to Persist
Gundlach doesn’t foresee a quick resolution to the tariff issues. He believes President Trump will continue his current trade policies, creating ongoing market uncertainty. He suggests this situation will likely persist for weeks or even months.
Market Performance
The S&P 500 is already down over 10% year-to-date, reflecting the current market anxiety.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
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