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CEO of DoubleLine Capital Jeffrey Gundlach
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“ ‘When I said that I think Trump is going to win in 2016, I also said that if you think 2016 is weird, just wait for 2020. Well, if you think 2020 is weird, just wait until 2024. You ain’t seen nothing yet.’ ”
That’s “Bond King” billionaire and DoubleLine Capital boss Jeffrey Gundlach striking an ominous tone in comments he reportedly made during a webcast this week at Schwab’s 2020 IMPACT conference,
Gundlach was cited by Financial Advisor magazine as saying that he expects widening economic inequality to bring about a some sort of revolution by 2027, with the 2024 presidential election directly in the path of massive social, economic and political change.
For now, Gundlach, in contrast to what the polls are showing, believes, as he did in 2016, that next week’s election will go Trump’s way.
“Mind you, my conviction is way lower than it was four years ago,” he explained. “But back in [that period], when Trump was little more than an asterisk in the betting odds, I predicted he was going to win. This one is much more murky, but in my eyes, it favors a Trump win.”
And while some would say Trump’s reelection poses a risk to markets and global stability, Gundlach sees it differently.
“You might dislike Trump or some of his policies, but risk is not what you’re getting with him, particularly compared to turning the presidency over to another party, and particularly when that party’s candidate isn’t saying what some of his policy positions are,” he said.
Gundlach added that his point of view doesn’t come from partisanship.
“I don’t have a Republican voice, I actually don’t like the Republicans, and I don’t like the Democrats,” he said. “I used to be a Democrat, and I’ve voted for Republicans, but I simply don’t like the influence peddling that both parties do. They’ve really turned into the same party in terms of their sources of money.”
Earlier this month, Gundlach told investors in a Real Vision interview that it’d be a good idea to avoid the stock market because it was poised to “crack pretty hard,” particularly in the United States. “I actually think owning 25% gold isn’t crazy right now. Nor do I think owning 25% cash is crazy,” he said.
Well, stocks certainly cracked hard in Wednesday’s session, with the Dow Jones Industrial Average DJIA, -2.48% down almost 800 points. The S&P 500 SPX, -2.49% and Nasdaq Composite COMP, -2.81% were also firmly lower.
