The 2020 IA25: Jeffrey Gundlach
The head of DoubleLine Capital gives his views on the economy and industry trends in light of the coronavirus.
Jeffrey Gundlach, also known as “the Bond King,” is the founder and CEO of DoubleLine Capital, and a major contributor to the Albright-Knox Art Gallery in Buffalo, New York. He has 125,700 Twitter followers. (His remarks are taken from his March 31 webcast.)
What’s Next for the Economy?
We are going to have changes in the way the global economy interweaves and how people work, … less connected to globalization and … [more about] bringing manufacturing back [to the U.S.].
The biggest winner — ultimately — could be the American economy after it goes through a tough patch, because [it] is seriously malfunctioning … as we’ve outsourced everything and created this huge trade [im]balance situation.
And we need to become more self sufficient, [which means we’re] capable of withstanding setbacks. We don’t have medicines — a lot of that’s imported. We don’t have a lot of manufactured goods, … and we have just-in-time inventory. That will start to be reconsidered, because you can’t withstand any sort of a shutdown of any magnitude or duration using [it].”
What Other Trends Lie Ahead?
There’s this idea that as we all go through this stay-at-home stuff, working from home and social distancing, … you start to change your habits.
Jim Cramer said something on CNBC … about some of the lessons we’re learning. Maybe it’s not so great to commute downtown, and maybe you can be effective working from home, at least some of the time; that we don’t have to pollute the air [so much]. … I started to realize that we’re never really going to go back to where we were — particularly the longer this drags on.