Taps Coogan – November 18th, 2020
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We’ve shared quite a lot of interviews over the years from Jeffery Gundlach, the founder of DoubleLine Capital and one of the largest fund managers in the world. In the following interview with the Master Speaker Series by Aris, Mr. Gundlach shares what I would describe as the darkest outlook I’ve heard from him since at least the Global Financial Crisis.
While Mr. Gundlach isn’t bearish on financial asset prices per say, he sounds fairly ‘agnostic’ about the ability to divine much of a trend amid a slew of dislocating developments.
Despite that, he sees more unconstrained Fed interventions, massive deficits, a weakening US dollar, the intersection of powerful deflationary and inflation forces, an end to US equity out-performance, worsening societal tensions, waning enthusiasm for democracy as an institution, the highest market cap-to-GDP ratio in history, the narrowest S&P 500 advance in history, and a PE ratio higher than in 1929. To sum it up, he notes:
“I said if you think 2016 is weird, wait until 2020. And I think I’ll call that a correct prediction… I’m going to double down on that. If you think 2020 is weird, and it sure is…, I think 2024 is going to be a real, real horror show because the problems that are causing the rancor in this society continue to escalate….”
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