Bond King Jeffrey Gundlach Bets on Gold and Rings the Alarm Bell on a Potential Recession

Havens in, tech stocks out may be the theme for Friday. Investors seem eager to insure themselves against geopolitical tensions that have flared up in the Middle East and Hong Kong this week, with gold vaulting on Friday. Meanwhile, U.S. technology stocks might not win any popularity contests as a red flag cropped up over how the trade war is biting that industry. Tech conglomerate Broadcom stock (AVGO) was sliding Friday morning after slashing its revenue guidance , citing a hit from an export ban on big Chinese customer Huawei. So it could be the Nasdaq Composite that leads the market south as traders head into the weekend. The Nasdaq, the Dow Jones Industrial Average , and the S&P 500 were all down in Friday morning trading, with the Nasdaq suffering the steepest losses . Trade tensions are also one reason DoubleLine Capital Chief Executive Officer Jeffrey Gundlach now sees a bigger chance of a recession hitting U.S. shores in the not-too-distant future. Providing our call of the day, Gundlach predicted a 40% to 50% chance of a U.S. recession within the next six months and a 65% chance of that happening in the next 12 months, in a webcast to clients late Thursday, according to a roundup of his comments from Reuters and other media outlets. He said signs of a slowdown on the global economic front are also a worry. The so-called bond king and closely watched market forecaster isn’t the only one starting to fret. JPMorgan’s […]

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