BREAKING NEWS

BREAKING NEWS

DoubleLine's Gundlach says U.S. equities are in long-term bear market

DoubleLine's Gundlach says U.S. equities are in long-term bear market
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Brendan McDermid(Reuters)
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NEW YORK (Reuters) - Jeffrey Gundlach, chief executive of DoubleLine Capital, on Monday said the S&P 500 Index is headed to new lows and that U.S. equities are in a long-term bear market.

Gundlach, speaking on CNBC TV, said passive investing has reached "mania status" and will exacerbate market problems.

"I think it is a bear market. I think we've had the first leg down and the second leg down is usually more painful than the first leg down," said Gundlach, who oversees more than $123 billion.

"I think this lasts a long time. It has a lot to do with the fact that I believe that we're in a situation that is... highly unusual - that we're increasing the budget deficit so spectacularly so late in the cycle while the Fed is hiking interest rates."

The intraday low for the year in the S&P was on Feb. 9, when it bottomed at 2532.69. The low close for the year was on April 2 at 2581.88. On Monday, the S&P was trading around 2572.

(Reporting by Trevor Hunnicutt and Jennifer Ablan; Editing by Dan Grebler)

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