As the markets gyrate from one day to the next, financial advisors and their clients may find the latest stock, bond and other predictions from DoubleLine Capital CEO Jeffrey Gundlach and Bianco Research President Jim Bianco both helpful and sobering.
The two market veterans spoke April 2 during an event in Austin. Their discussion, moderated by DoubleLine Deputy Chief Investment Officer Jeffrey Sherman, took place right after President Donald Trump announced the so-called “reciprocal tariffs,” which have since been adjusted multiple times.
As Bianco said during the discussion with Gundlach and Sherman, “In January it was, ‘yes, [they’re] inflationary, and tariffs mean a strong dollar.’ But now we're in April and tariffs mean ‘a recession and a weak dollar.’ … The market has kind of zigzagged all over the place.”
Gundlach expressed concerns about the impact of the tariffs and associated policies on consumer prices: “If the problem is that we have a trade deficit with all these other countries, well, it's because they're [goods are] cheaper [than ours]. And if disinflation was a trend for many years with … jobs going overseas … , it seems that you should at least entertain the idea that going the other way [and] bringing the jobs back will not be disinflationary.”
Here are eight predictions, trends and tips that Gundlach and Bianco highlighted during their recent conversation.
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