Yahoo Finance - Jeffrey Gundlach: The US Stock Market 'Will Get Crushed' in the Next Recession

December 03, 2019

Article by Julia La Roche in Yahoo Finance

Influential bond investor Jeffrey Gundlach, the CEO of $150 billion DoubleLine Capital, sees a scenario where U.S. stocks get crushed in the next recession — and likely won't recover for quite some time to come.

Even with Wall Street benchmarks just days removed from new record highs, the bearish investor declared that “the pattern of the United States outperforming the rest the world has already come to an end.”

In an exclusive interview with Yahoo Finance, Gundlach noted that 2019 was one of the "easiest" years ever for investors in "just about anything... Just throw a dart, and you're up 15-20%, not just the United States, but global stocks as well."

For several reasons, Gundlach warned that pattern isn’t likely to last forever.

"So, where are we today? Today, we have the S&P 500 is killing everybody else over the last ten years, almost 100% outperformance versus most other stock markets,” he explained to Yahoo Finance.

“My belief is that pattern will repeat itself,” said Gundlach, who has spent much of 2019 warning of a downturn ahead of the 2020 elections.

“In other words, when the next recession comes, the United States will get crushed, and it will not make it back to the highs that we've seen, that we're floating around right now, probably for the rest of my career, is what I think is going to happen,” he added — suggesting that a recovery won’t be seen for years.

To read this article in Yahoo Finance in full and view the relating chart, click here.

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