Jeffrey Gundlach of DoubleLine predicts imminent recession as economic pressures intensify

by | Jul 10, 2023 | Recession News | 30 comments

Jeffrey Gundlach of DoubleLine predicts imminent recession as economic pressures intensify




Jeffrey Gundlach, DoubleLine Capital CEO, joins CNBC’s “Closing Bell” to discuss the ongoing banking crisis and his forecasts for the economy and stock market….(read more)


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Economic Headwinds Building and Recession Will Arrive in a Few Months: DoubleLine’s Jeffrey Gundlach

Renowned investor and DoubleLine CEO, Jeffrey Gundlach, has recently warned that economic headwinds are building, and a recession will likely arrive in the coming months. His insights and track record in predicting market trends have made him a respected figure in the investment community, prompting many to take his words seriously.

Gundlach’s concerns stem from various factors that he believes are converging to create a perfect storm for an economic downturn. One key indicator he points to is the inversion of the yield curve, which historically has preceded every recession in recent decades. The inversion, which occurs when short-term interest rates exceed long-term rates, suggests a loss of investor confidence in the economy and is seen as a reliable predictor of economic turmoil.

Another factor that Gundlach identifies is the deteriorating corporate profit margins. He argues that the profitability of American companies has already peaked and is beginning to decline, indicating a potential slowdown in economic growth. He cites rising labor costs, trade wars, and weakening global demand as contributing factors to this trend. Moreover, corporate indebtedness has reached record levels, which could further exacerbate the situation if an economic downturn occurs.

Gundlach also expresses concerns about the impact of the Federal Reserve’s monetary policies. The central bank’s series of interest rate hikes, aimed at cooling an overheating economy, has raised borrowing costs for both companies and consumers. The higher interest rates, coupled with the withdrawal of quantitative easing measures, have tightened financial conditions, potentially slowing economic activity.

See also  The Potential Existence of a Recession in the US

Furthermore, geopolitical uncertainties, such as Brexit and the ongoing U.S.-China trade war, are adding to the economic headwinds. These uncertainties have created an atmosphere of caution among businesses and consumers, leading to reduced investment and spending. Gundlach argues that the negative impact of these uncertainties will likely become more pronounced in the coming months.

While Gundlach’s predictions concerning a looming recession are undoubtedly concerning, it is worth noting that economic forecasting is an inherently challenging task. Many economists and market analysts have their own views and interpretations of the available data, and not all of them agree with Gundlach’s assessment. Time will ultimately determine the accuracy of his predictions.

That being said, investors and individuals should not disregard Gundlach’s warning. It is always prudent to be prepared for an economic downturn, regardless of whether or not one materializes in the near term. Diversifying investment portfolios, reducing debt, and maintaining a healthy emergency fund are wise steps to take in any economic climate.

In conclusion, Jeffrey Gundlach’s warning about building economic headwinds and an impending recession should not be taken lightly. His expertise and previous successful predictions give weight to his concerns. While the future remains uncertain, it is crucial for individuals and businesses to remain vigilant and prepared for potential economic challenges ahead.

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30 Comments

  1. Abe Ibrahim

    a nother bond salesman talks…all dooms and glooms…

  2. Matt P

    There was a suicide at Gunlachs Buffalo, NY house recently. So sad.

  3. Jerry P

    Those words were different from what some other dude said on some other channel at some other point in time.

    I'm not sure if I agree or should listen to these words…or those other words by that other guy.

    And if I listen to them or agree ..will I, should I do anything differently than if I had NOT heard those other words.
    Lest I forgot the previous words spoken by even other people at other times etc etc etc etc etc etc.
    Or ..I could listen to Toadies Possum Kingdom again for these 3 minutes.
    I think I shall do that.
    Then maybe Aerosmith's Pump album.
    Of course…Chicago's Greatest Hits CD is good too.

  4. Frederick chandler

    The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during the crash, for stock holders what are the best stocks to buy now or put on a watchlist?

  5. bob fletch

    Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.

  6. 220volt-u

    who is responsible for that artificial intelligence?

  7. Norma Ward

    Major indexes booked their worst yearly performance since 2008 thanks to drivers like the recession, war, hiked interest rate and inflation which so far doesn’t seem to be easing off, so I’m left wondering what 2023 has in store for us investors, I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here, is it a good time to buy or do I wait?

  8. MARK FONSECA

    Do the math we been in a resession check the credit card companys slow pay no pay for the past 3 and half quarter's.

  9. Cam Adams

    Well yes. If you say "a recession is coming in months" every week for 3 years…. you will eventually be right.
    You know admitting you don't know what's happening is an option right?

  10. G L

    Stay bullish until guys like him throw in the towel

  11. Marcus Sarah

    16:51I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN…I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED… CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?

  12. Bobby mainz

    Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does.

  13. Sven Grot

    It surprises me why everybody gets really worked up about inflation and inflation data. Inflation has always existed, and people have been using investments to beat the inflation. The stock market return, for example, always beats inflation. I heard of someone who invested $121k last October, and has grown the portfolio by more than $400k. I need recommendations that can give me similar return.

  14. SoloAdventures

    This aged well. Everyone saying a recession and downfall coming with markers making new highs daily

  15. Diana Rabbani

    Recessions are where millionaires are created. I feel for the older generation, but you should do everything possible to double and triple your investments if you are young or middle age.

  16. hush bash

    With inflation running at a four-decade high, Recession is now the ‘most likely’ outcome for the economy and i cannot imagine being a victim of circumstances. My portfolio suffered a big hit, holding it further won’t be any good. I've heard of people netting hundreds of thousands this red season. How can i ensure this?

  17. Erich Von Molder

    If recession does come in a few months that's good for stocks, but from now until then we may continue to be in this range.

  18. stockRage

    I am aware that continuing to invest during periods of volatility can be a smart way to build wealth. I’ve heard testimonies of people accruing over $250k in this red period. What measures can I take to achieve this?

  19. Nick

    Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio.

  20. YT_C

    Why is market going up every day then?

  21. loh

    Did we print money to bail out banks or we still doing quantitative tightening?

  22. Eric4real

    The last 3 yrs (and also the last 10yrs), hundreds of youtube videos saying crash, stagflation,housing market crash, stock crash, and NOTHING has change or happened. Facts are facts.

  23. Harper Levi

    Yeah markets haven't been deeming the Fed's guidance that they will maintain high rates regardless of swelling debt costs in order to control inflation as credible. I woulld underweight stocks for a little as the market begins to correct because honestly I still think stock prices are massively inflated at the moment. I have approximately $550k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

  24. tom hook

    President Biden already delivered record smashing red hot economy in 2021, and 2022. If president Biden can deliver the much needed recession we begged for in 2023, Biden is absolutely the best president ever on earth in human history

  25. Lloyd Bernard

    The market and the Fed consistently underestimate the sticky nature of inflation. The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?

  26. lucIano boccedi

    The stock market rally run is over but I don't kFnow if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.

  27. Rebecca Voodoo

    As they raise rates it cripples the economy investors will shift to cash

  28. Rebecca Voodoo

    These ( No Tools) it’s a printing machine and I predict dollar will plunge on massive hemorrhaging debt stocks are priced in dollars

  29. mike

    I moved large balances from BOFA to money markets. Its free money and a no brainer. Fed will continue to raise rates thats what they have said. Don't fight the fed.

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