From NBC Universal:

DoubleLine Capital CEO Jeffrey Gundlach predicts a likely recession in 2024. He believes the Federal Reserve’s refusal to lower interest rates has dashed hopes of a “Goldilocks” economic scenario, leading to a 1.6% drop in the S&P 500. Gundlach advises investors to raise cash for potential buying opportunities during the recession.

Gundlach addressed his concerns at the 2019 Sohn Conference in New York, where he said he becomes nervous when he hears the word “goldilocks” and warned against blind optimism in the market. The Federal Reserve’s decision to keep interest rates unchanged at 5.25% to 5.50% on Wednesday dashed hopes for a “Goldilocks” economy. Gundlach suggests keeping cash to fund buying opportunities during a recession.

According to Gundlach, the market’s faith in the economy was “euphoric” just weeks ago, but that is likely to change as the inflation rate stalls. He still predicts a recession hitting in 2024 and advises investors to take advantage of buying opportunities during an economic downturn. The S&P 500 has already fallen 1.6% since the start of 2024, so the impact is already being felt.



Read more: Gundlach says Goldilocks talk makes him nervous, sees likely recession