Earlier posts on the consistently much-watched webcast by Jeffrey Gundlach earlier:
- Jeffrey Gundlach says global economic growth is slowing
- More from Gundlach: Next move in the US dollar is likely to be lower
Posting these now via Reuters and Bloomberg as a bit of a recap on what has become a slightly more sedate Asia session:
On equities:
"The breadth of the decline in the global equity market is pretty powerful"
- Gundlach, citing an Atlanta Fed research study, calculates $600 billion of Federal Reserve asset unwind is equivalent to three interest rates hikes."Maybe that is what really has gotten things in the wrong way," Gundlach said about the S&P sell-off.
- "The stock market has been following the Fed's shrinkage of the balance sheet of quantitative tightening to the downside."
On the Fed:
- "The bond market thinks the Fed isn't going to tighten at all in 2019 or 2020," Gundlach said. "The Fed still wants to maintain some rhetoric of flexibility to tighten rates just in case they see the recovery in equity market values."
