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Billionaire “bond king” Jeffrey Gundlach is sounding the alarm bells.
That’s because after the Fed signaled rate cuts in 2024…
The 10-year Treasury yield plunged below 4% on Thursday.
Gundlach co-founded DoubleLine Capital in 2009, which today manages more than $140 billion in assets.
The billionaire bond trader predicted the 2007 housing crash…
And he’s now warning about the future consequences of the 10-year yield’s plummet below 4%. In his own words:
“There’s something about if you break below four on the 10-year that I think it almost sounds like a fire alarm going off relative to the economy.”
What’s worse…
He expects the 10-year fall into the “low threes” in 2024.
And he sees a recession setting in sometime next year.
He’s recommending investors to stick to long-dated bonds and suggests to switch from short-dated T-bills to long-duration Treasurys once a recession hits.
Yours in Wealth,
Ian Wyatt