DoubleLine’s Gundlach warns stocks are ‘exhibiting signs of a mania’

MarketWatch/Joy Wiltermuth/6-14-2023

“The stock market, frankly, is exhibiting signs of a mania, where you have a very concentrated part of the market’s that driving the entire train.” – Jeffrey Gundlach, DoubleLine Capital

USAGOLD note: Gundlach recommends an allocation of 20% stocks, 60% bonds, and 20% real assets. He has spoken favorably of gold many times. The thing to keep in mind about manias is that when the direction changes, the plunge can be sudden, broad, and deep……

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“Have you ever seen in some wood, on a sunny quiet day, a cloud of flying midges — thousands of them — hovering, apparently motionless, in a sunbeam? …Yes? …Well, did you ever see the whole flight — each mite apparently preserving its distance from all others — suddenly move, say three feet, to one side or the other? Well, what made them do that? A breeze? I said a quiet day. But try to recall — did you ever see them move directly back again in the same unison? Well, what made them do that? Great human mass movements are slower of inception but much more effective.” – Bernard Baruch