Wall Street’s “new debt king” known as double line capital (Doubleline Capital) founder Gundlach (Jeffrey Gundlach) said that the U.S. Federal Reserve has been manipulating the market for a long time, a large number of stimulus measures led to rising asset valuations.
Foreign media quoted Gundlach pointed out that the Federal Reserve expanded balance sheet, and the S&P 500 index valuation for many years there is a positive correlation, since the Federal Reserve launched quantitative easing has been the existence of this phenomenon. Although U.S. stocks hit a record high, in terms of its valuation and bond correlation, it is still below the historical average.
The U.S. Consumer Price Index (CPI) rose 0.8% month-on-month and 4.2% year-on-year in April, the largest increase since September 2008, exceeding economists’ and DoubleLine Capital’s expectations. Gonzalez said that according to DoubleLine Capital’s model forecast, inflation will likely continue to rise in the next few months, possibly peaking in July. With commodity prices rising, he believes the dollar will rise modestly for the rest of the year.
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