DoubleLine’s Gundlach says Fed’s ‘pivot’ is following bond market’s lead

Reuters/Jennifer Alban/6-19-2019

“Jeffrey Gundlach, chief executive of DoubleLine Capital and the most widely followed bond investor, said the Federal Reserve’s dovish turn in its policy statement on Wednesday took its lead from the bond market. The Fed is doing ‘what the bond market says – with a lag,’ said Gundlach, who oversees more than $130 billion in assets. ‘The bond market definitely helped to encourage the ‘Fed pivot.’”

USAGOLD note:  If Gundlach is right, and we think he is on to something, it might at least partially explain gold’s strong reaction since the Fed issued its statement this afternoon. ‘What the bond market says’ is: “Lower rates are here – not on the way. . . but here.” Gundlach, we might add, is an advocate of gold ownership in this financial environment.  To get more of a feel for Gundlach’s thinking, we recommend a visit to the link.