I love how bears always find a way to explain how the record highs mean nothing and how we’re in a secular bear market, merely bouncing for a decade or so. All of the gains are temporary. Historians will look back upon this era and view it the same as the Great Depression of the 1930s.
Here’s The Bond King, Jeff Gundlach, insisting we’re in a bear market — because, well I don’t even know how to defend it.
“I think we’re going to keep seeing more tension and I think the 25% tariff bump is better than 50% chance” of happening, DoubleLine CEO Jeffrey Gundlach tells CNBC.
He believes U.S. stocks are in a bear market because the NYSE composite index has fallen “over 20% and has failed to return to its high.”
Gundlach also criticizes President Trump for heralding monthly economic reports, such as U.S. job creation, as symbols of the economy.
We’re in a secular bear market inside of a cyclical bull market. Or is it the other way around? Stocks entered a great bear market in 2000 and then re-re-entered into another one in 2007 and never recovered. Sure the market is up 30% this year, but those gains are merely happenstance. Trust Jeff Gundlach — he’s a fucking champ.
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You can’t argue against his math.
The NYSE did drop more than 20%, and has not since recoverd. That is *literally* the definition of a Bear Market, one that started in Jan 2018, not 2007. However, the S&P 500 and Nasdaq are technially NOT in a Bear Market.