The billionaire “Bond King” Jeffrey Gundlach thinks that inflation will not fall below 4 %next year, and bond markets already have the smell of a weaker economy ”. According to the Bond King, for gold, this means a long -term acquisition after a “shockingly stable” and “boring” year. Jeffrey Gundlach’s opinions and evaluations shared in the Doubleleline Total Return Web Publication Kriptokoin.comWe have compiled for readers.
“A hawk a Fed, the economy pulls down”
According to Jeffrey Gundlach, CEO CEO of Double, the financial markets are waiting for “challenging waters” in 2022 because the Federal Reserve tries to accelerate the Tapering program next year and increase interest rates. The king of bonds is evaluating the following:
Jerome Powell will double this tapering speed that will release us in March. Since the stock market and risk assets have been clearly supported for more than decade with balance sheet expansion, it is very likely to turn into hard water.
Stating that Şahin Fed will draw the economy, Jeffrey Gundlach states that in 2022, the Central Bank states that as long as we continue to increase the interest rates, economic problems will increase:
We are likely to see economic problems with only a few interest rate hikes from the Fed. Four interest rate hikes or 1 %to 1.5 %rates disrupt the economy.
Jeffrey Gundlach: The dollar became a ceiling for gold
The bond market already signals the red flags. According to Jeffrey Gundlach, since March of this year, the bond market seems to be sensing a weaker economy. Jeffrey Gundlach, who says “Economic problems should be expected sooner or later, thinks that we will start to see problems in the second half of 2022.
The bond king says that the trigger behind a hawk Fed is inflation that will not go next year. Jeffrey Gundlach warns that the US inflation rate may not fall below 4 %on an annual basis for the whole of 2022:
Automobile inflation may decrease, timber inflation may be dispersed, inflation may be dispersed in some of the supply chain bottlenecks, but wage increase and shelter may replace and continue. When we look at the end of 2022, it is very likely that we will not see a data with a value of less than 4 %at any time in 2022.
Jeffrey Gundlach also predicts that inflation may rise to 7 %on an annual basis in the next few months. Jeffrey Gundlach, who asked the questions about gold, says that it is “shockingly stable” and “boring ında in the light of commodity inflation and the wild journey in Bitcoin this year:
Gold and silver are a kind of orphan in the commodity market. They never rise. The dollar was the ceiling of gold. I think gold will rise when the dollar falls.
According to the Bond King, the dollar will fall hard and developing markets will perform great performance
Jeffrey Gundlach continues to hold his gold as a long -term investment and adds that he received his valuable metal at $ 1.180 in September 2018 in September 2018. However, compared to other things obtained from commodities this year, he thinks that he is definitely not rewarding. According to the billionaire money executive, the long -term view of the dollar, due to the twin deficits in the United States in the second half of 2022 or 2023 with the expectations of a weaker dollar in the direction of “strong decline”:
When the dollar starts to fall, I think it will fall quite strongly and remove the lowest level of 2009. When the dollar starts to fall, you will see a tremendous performance in the stocks outside the USA. Developing markets will perform very strongly.
The CEO of the CEO also foresees that the Fed will come into play through money printing to defend risk assets:
If the stock market falls 20 %or more, the FED will be activated. Money printing and distribution of money will remain with us. And I guessed that we would send money to people years ago and we would do it in wider and larger amounts.
