Gundlach: S&P 500 likely to go below February 2018 lows

“The stock market has been following the Fed’s shrinkage of the balance sheet of quantitative tightening to the downside.”

Jeffrey Gundlach, chief executive of DoubleLine Capital, said Tuesday on an investor webcast that the Standard & Poor’s 500 Index is likely to go below its February 2018 lows.

Gundlach, citing an Atlanta Fed research study, calculates $600 billion of Federal Reserve asset unwind is equivalent to three interest rates hikes.

Reference

Reuters, Jennifer Ablan, Trevor Hunnicutt, 2018-12-12, “DoubleLine’s Gundlach says S&P 500 likely to go below February 2018 lows”