DoubleLine Funds Founder Jeff Gundlach said Donald Trump won the presidential election because many Americans felt the economy left them behind.
He was one of the few market strategists who correctly predicted — back in January and before the primaries — that Trump would win.
“Markets remain compeletely confused as to what is going to be the real trend election from this election,” Gundlach said during a webcast with clients on Tuesday.
“I’m struck by how many investors and investment-bank econ departments were puting out notes one week before the election [saying] that if Trump wins, the markets will absolutely crash … amazingly, many of these exact same investors and economists now say Trump is great for stocks.”
Here are Gundlach’s charts:
Trump's win will not be economically positive for consumer spending because people that voted for Trump are already economically challenged, Gundlach said. And, those who voted for Hillary Clinton are already economically depressed.
'Maybe liquor sales will go up,' he said.
Gundlach wondered why the news of higher Obamacare premiums was released before the election, not after.
'By the action of the FANGs, the market was predicting a Trump win,' Gundlach said. 'I strongly advise investors to stay away from these things in a big way.'