Jeff Gundlach Warns Yields And Stocks Have Peaked: “The Trump Rally Is Losing Steam”

Thursday, December 1, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
Dec 1, 2016

Having predicted the Donald Trump victory, and nailing the upturn in US Treasury yields as well as the concurrent stork market rally, DoubleLine’s Jeffrey Gundlach appears to have once again taken the other side of the trade after riding it for the past 3 weeks, and is now considerably less exuberant on Trumponomics.

Speaking to Reuters, Gundlach said that markets could reverse the recent momentum in equities (something they appear to be doing this very moment), and at the very latest by U.S. President-elect Donald Trump’s Jan. 20, 2017 inauguration.

The new bond king said that the strong U.S. stock market rally, surge in Treasury yields and strength in the U.S. dollar since Trump’s surprising presidential victory more than three weeks ago look to be “losing steam,” Gundlach told Reuters in a telephone interview.

“The bar was so low on Trump to the point people were expecting markets will go down 80 percent and global depression – and now this guy is the Wizard of Oz and so expectations are high,” Gundlach said. “There’s no magic here.”

Putting money where his mouth is, Gundlach – who has been bearish on bonds for the past three months – said he had purchased Treasuries and Agency MBS as yields rose.

The Rest…HERE

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