CEO of DoubleLine Jeffrey Gundlach who is also well known as the new king of debts pointed out that USD has reached the lowest point on Tuesday. It will head back up in the near future. However, it isn’t a good item to invest.
According to CNBC, since the risks of hurricane Emma and situation with North Korea, USDX keeps low recently. It reached 91.011, the lowest point in two years. Gundlach believes that it has reached the bottom in the short term. USDX has already fallen 10%.
Gundlach pointed out USD has reached the bottom. USDX might get back to 96 to 97level. However, the increase wouldn’t last long. Eventually, USD will face another falling. Gundlach indicated his thoughts on a live stream Tuesday. He was one of the minority investors that predicted Trump would be the president in Wall Street. USD highly increased after the election but dropped dramatically recently.
Gundlach expressed again his worry about the market. He reminds that now is not the time to create more risks. He said it is a bad time point to bear a number of risks in the bonds market. Especially, we shall avoid those junk bonds.
Gundlach said we should remind that the increase of business and industry loans are decreasing. In the past, FED always widens the interest rate conditions. However, they are trying to increase the interests. It’s hard to increase for the loans.
He believes the success of the stock market was related to the global central banks’ quantitative easing policy. However, it has passed. The balance sheet and market next year make people worry.