Ahead of the most important economic data of the year, the jobs report, Jeff Gundlach is shooting his trebuchet at the Fed, trying to reason and teach mathematics and philosophy to a classroom of orangutans.
DoubleLine Capital co-founder Jeffrey Gundlach, widely followed for his investment calls, warned on Thursday that the U.S. Federal Reserve should not raise rates in December as economic and financial conditions have become vulnerable.
Gundlach said the Goldman Sachs Financial Conditions Index shows the market has already tightened for the Fed as the index sits at its worst level since 2014 and the Great Recession.
Gundlach, speaking at the Inside Fixed Income conference, also cited trailing earnings, which are not trending in the right direction. It also appears “the dollar has started another leg up,” he noted.
The biggest reason the Fed should not raise rates is the implied inflation rate in bond market pricing, he said. Implied inflation for the next two years is “darn near zero,” said Gundlach, whose Los Angeles-based DoubleLine was overseeing $81 billion in assets under management as of the end of the third quarter.
“Junk bonds are signaling with clarion bells: Do not raise interest rates,” Gundlach said. Excessive issuance of covenant-lite debt is yet another sign of danger in the credit markets, he added. Junk bonds should be sold on strength, he said.
If oil stays below $50, downgrades will come to the investment-grade bond market, he said
That last line is the most important. Any person in this market knows that there is debilitating deflationary pressures out there: fuck the jobs market. Take a look at prices and whole industries being ruined before your eyes, as the Apple-Amazon vortex of deep deflation makes its way to a shopping mall near you.
Anyone who is calling for a Fed rate hike is 99% bearshitter, 1% human being. Logic doesn’t exist in the Fed rate hike camp, with the U.S. oil and gas industry in tatters, and a $100 billion debt crisis looming in the on-deck circle.
Fed hikes: dollar rages on, oil crushed, $100 billion in debt goes kaput: panic and tragedy strikes Wall Street 2008 style.
Related: Double Line Capital just reported its 21st consecutive month of inflows, currently managing over $50 billion in assets.
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FANG spells depression in English and the big money knows it. Free Obama phone fuckery a search engine doing financial engineering a ghetto dvd service because real cable is out of budget and the ultimate depression signal. Shopping thru the mail. The “sharing economy” is the second coming of hell. Imagine every hobo with a free phone around a campfire watching some shitty dvd while searching for porn and buying a pos tent from China and possibly a back up TV. In the fucking 1930’s. lol
Free Obama phone?
http://urbanlegends.about.com/od/barackobama/a/obama_phone_free_cell_phones.htm
Romney sucks. bad
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCsQFjAAahUKEwjC0u_GvfvIAhUJ5WMKHdUGC1U&url=http%3A%2F%2Fwww.obamaphone.com%2F&usg=AFQjCNEfgdgoHn5-PrhOiGTJCvEdnTIVYw&sig2=s9HRz5QHtfJc8FSXCmWzbQ&bvm=bv.106923889,d.cGc
These phones did not originate during Obama’s administration.
http://urbanlegends.about.com/od/barackobama/a/obama_phone_free_cell_phones.htm
Gundlach tends to know what he’s talking about.
I love when lines like vortex of deep deflation make the nightside entry. I am 1% human. But I will become 100% Master of the Universe in global collapse part II.
Let me add some “granularity” to the post. Of the 1% human being portion, 100% is douche bag.