An article over the weekend from Barron’s, and being picked up this morning in Asia by the good people at MNI:
Jeffrey Gundlach’s Surprising Forecast
The bond titan thinks the 10-year could potentially take out its modern-era low of 1.38%
- Gundlach has an idiosyncratic view of where markets are headed in 2015. Like virtually everyone, he expects the Federal Reserve to begin raising the federal-funds rate this year, but he predicts that the impact will be the opposite of the conventional wisdom. To wit, longer-term bond yields will, in fact, decline rather than rise as a result of a surprising flattening of the yield curve, he argues.
More at the link
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Also, his thoughts on oil:
- Gundlach says he’s constantly asked “how low oil prices can go,” and he responds that no one will know until they stop falling. “That answer isn’t meant to be cute,” he says. “When you have a market that showed extraordinary stability for five years — trading consistently at $90 [a barrel] or above — undergo a catastrophic crash like this one, prices usually go down a lot harder and stay down a lot longer than people think is possible.”
