Jeff Gundlach doesn’t think there’s a good chance we’ll see the Fed hikes rates this year.
In his latest presentation on the economy and the markets, the so-called “Bond King” talked about the high-yield market, the Fed, and the potential the nominal GDP could be set to turn higher.
Gundlach said that there will not be a collapse in the high-yield bond market this year because there just aren’t the many maturities, or bonds that need to have their principal returned to investors.
He also quoted Hemingway when discussing bankruptcy (“Gradually, then suddenly.”), and thinks any growth in wages is the most important thing to consider when looking at a potential rate hike from the Fed.
Thumb through each of these slides and examine every chart closely if you want to understand how Gundlach thinks.
Thanks to DoubleLine Funds for letting us feature this presentation.