“The reason the markets aren’t going lower is people are holding and hoping. The market bottoms out when people are selling and sold out — not when they are holding and hoping. I don’t think you’ve seen real selling in risk assets broadly. Markets need buying to go up and they need volume to go up. They can fall just on gravity.”
DoubleLine Capital co-founder Jeffrey Gundlach warned after the weak jobs number on Friday that the US equity market as well as other risk markets including high-yield “junk” bonds face another round of selling pressure.
“People are acting like everything is great. Junk bonds are at a four-year low. Emerging markets are at a six-year low and commodities are at a multi-year low — same level as in 1995 … GDP is not growing at a nominal basis. … Clearly what’s happening is people are waking up to the idea that global growth is not what they thought it was.”
Even International Monetary Fund Managing Director Christine Lagarde affirmed this, Gundlach said: “You talk about an important moment when somebody who is traditionally a cheerleader for a bright future says, ‘I have to downgrade my global growth forecast,’ as Lagarde did.”
— Excerpt contributed by Jason Kelly
Z-val definition and more forecasts in The Z-val Zone.
Here are your three options:
Option 1: Annual Subscription
For just $236.97 per year, you’ll receive everything listed above to completely upgrade the way you manage your investments, including a copy of The 3% Signal. This is what I recommend:
Option 2:Monthly Subscription
If you'd like to try The Kelly Letter without paying the full year, you can pay $19.97 per month, but it will not include a copy of The 3% Signal :
Option 3:Free Email List
If you'd like to hear more from me but aren't ready to part with any money yet, you're welcome to join my free email list:
Join Matt and thousands of other rational investors to invest without stress.
Subscribe to The Kelly Letter now!