Gundlach
Doublelines Gundlach on CNBC
  • Does not see the fed going 50 BPs
  • Fed follows the market
  • The 2 year would have to go 25 basis points to get the Fed to tighten by 50 BP
  • See 5 hikes in 2022
  • Sees terminal fed funds rate at 1.50%- 1.75%
  • The Fed will continue to tighten until something breaks.
  • I think Fed will go into quantitative tightening
  • We're seeing some recession indicators
  • Fed should have stopped QE a year ago

Nasdaq is around -92 points and S&P is down -15 points as he speaks.

  • I expect inflation to come down but the decline to be disappointing
  • 7.5% CPI sounds worse than 7% to me
  • Risk assets have to reprice as a result of higher rates
  • Credit spreads are starting to widen and will hurt stocks
  • Low consumer sentiment is about time
  • Near term in equities expect stability