- Jeff Gundlach, CEO of DoubleLine, reopened a short position against the S&P 500, expecting the coronavirus’ economic outlook to further tank the index.
- The investor took to CNBC on Monday to reveal his new stake, adding that the Federal Reserve’s spate of policy measures aren’t enough to prevent a second downturn.
- The so-called “bond king” exited the last of his stock shorts on March 18, tweeting “the profits were just too great to not harvest.”
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Roughly one month after closing the last of his stock market shorts, Jeff Gundlach is once again betting the market will plummet.
The CEO of DoubleLine and so-called “bond king” took to CNBC on Monday, saying the Federal Reserve’s range of relief measures aren’t enough to prevent a second market plunge. Recent economic data detailingÂ the spike in unemployment is flying over investors’ heads, Gundlach said, and prices will react negatively when the news catches up with them.Â
“I’m certainly in the camp that we are not out of the woods. I think a retest of the low is very plausible,” Gundlach said. “I think we’d take out the low.”
Gundlach revealed he placed a short position on the S&P 500 at 2,863, saying he doesn’t expect the index to reach 3,000 before falling further. The stake isn’t the same size as his February bet against equities, he added.
The CEO closed his previous stock shorts on March 18, tweeting “the profits were just too great to not harvest, and the panic is palpable.”
The S&P 500 has soared roughly 30% from its March 23 low and has stabilized just below the 3,000 threshold. US equities posted their fourth straight day of gains on Monday, jumping as investors cheered plans to reopen state economies. The index sat at 2,882.47 as of 3:15 p.m. ET, up roughly 11% year-to-date.
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