Home Economy Why Jeffrey Gundlach Thinks the Dollar Is ‘Doomed’

Why Jeffrey Gundlach Thinks the Dollar Is ‘Doomed’

0

Jeffrey Gundlach

Jeffrey Gundlach, no stranger to dire pronouncements, has a prophecy for the US dollar. It’s “doomed,” he says.

To blame are the spiraling federal budget deficit and the trade deficit, the CEO of bond investing powerhouse DoubleLine Capital contended in a CNBC interview. “Ultimately, the size of our deficits—both the trade deficit, which has exploded post-pandemic, and the budget deficit, which is, obviously, completely off the charts—suggest that in the intermediate term—I don’t really think this year, exactly, but in the intermediate term—the dollar is going to fall pretty substantially,” he said.

If the greenback really went into the tank, that would have an impact on the bond market. “That’s going to be a very important dynamic, because one of the things that’s helped the bond market, without any doubt, has been foreign buying, with the interest rate differentials having…

Click here for full article…www.ai-cio.com