Gundlach warns U.S. economy is floating on ‘an ocean of debt’

Bloomberg/Hailey Waller and James Ludden/1-12-2019

“Echoing many of the themes from his annual “Just Markets” webcast on Tuesday, Gundlach took part in a round-table of 10 of Wall Street’s smartest investors for Barron’s. He highlighted the dangers especially posed by the U.S. corporate bond market. Prolific sales of junk bonds and significant growth in investment grade corporate debt, coupled with the Federal Reserve weaning the market off quantitative easing, have resulted in what the DoubleLine Capital LP boss called ‘an ocean of debt.’”

USAGOLD note:  Gundlach echoes warnings issued by Janet Yellen several weeks ago.  He says stocks “are now in a bear market.”

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