Pensions & Investments: DoubleLine's Jeff Gundlach Says Fed Won't Cut Rates, Markets Overpriced
Article by Erin Arvedlund in Pensions & Investments
Bond king Jeffrey Gundlach, CEO of Los Angeles-based money manager DoubleLine Capital, said the bond market is getting increasingly "grabby" and stocks are overvalued.
In a Jan. 24 Twitter/X interview with Pensions & Investments Editor-in-Chief Jennifer Ablan, Gundlach said that since the Federal Reserve stopped raising rates and pivoted to a dovish stance last fall, "Everything went up. Blue chips started rallying ... and became overvalued. The Magnificent Seven (stocks) aren't outperforming the S&P 500; they're keeping up but not beating" the index.
"We call this a grabby market. It's an industry phrase; people suddenly lift every offer. There's new issues coming out and they're oversubscribed 20 or 25 times. There's more demand than there is supply of new issues. This is a lazy, complacent market," that reminds him of the period just before the ......