Stocks in lockstep with bonds? That’s an unsettling landscape for DoubleLine’s Jeff Gundlach
by Mark DeCambre
This market is dealing with a “mass psychosis.” That’s the latest perspective on the state of Wall Street from Jeff Gundlach, the star money manager who founded DoubleLine Capital.
Late Tuesday, during his regular webcasts to discuss markets, Gundlach sounded perplexed that investors’ demand for the perceived safety of government bonds has driven 10-year Treasury notes TMUBMUSD10Y, -2.98% to record lows, even as the Dow Jones Industrial Average DJIA, +0.10% and the S&P 500 index SPX, -0.04% are soaring to fresh record highs.
Treasury yields, which have come off their 2016 nadir, are still hovering below their levels before the U.K.’s decision to exit the European Union—dubbed Brexit—sent global stock markets spiraling down. Bond prices move inversely to yields.