- Julie Skye
Cocktail? Did someone say Cocktail?
One of my regular "go-to" Market Moguls...Jeff Gundlach CFO of Doubleline Capital holds regular updates, complete with cool PowerPoint presentations. I look forward to these updates and often use them in my Monthly Email Blasts. Last Tuesday this headline caught my eye:
Gundlach Warns of 'Cocktail of Economic Risk'
The U.S. economy will be quite vulnerable when the next recession hits, Gundlach says.
âAny thoughtful person would be concerned,â he said during a webcast on Tuesday. Combining these issues with the impact of tariffs, âItâs sounding like a pretty bad cocktail of economic risk, ⌠and risk to the long end of the bond market. The Bond King puts the odds of a Fed rate cut over the next 12 months at roughly 70%.
As for the chance of a recession in the next two years, he said that âwould be extremely high.â âFor the next 12 months, Iâd give you a recession probability thatâs 50-50. Next six months, Iâd probably have it down at 30%.â
To see what other risks make up his Risk Cocktail, check out this link: https://www.thinkadvisor.com/2019/05/15/gundlach-warns-of-cocktail-of-economic-risk/?kw=Gundlach%20Warns%20of%20%27Cocktail%20of%20Economic%20Risk%27&utm_source=email&utm_medium=enl&utm_campaign=portfoliobuilder&utm_content=20190520&utm_term=tadv