Source: Wall Street News

The “king of bonds” Jeffrey Gundlach once again expressed his pessimism about the future of the US economy, insisting that the US is about to face a recession.

As CEO of Dual Tier Capital, Gundlach has been warning of the risk of a recession in the US economy since last year.

Recently, in an interview program on Fox Business Network, he once again reiterated this position, although he admitted that it is difficult to determine whether a recession will occur this year. However, he believes the recession will arrive in 2024 or 2025 at the latest.

Gundlach is known as the “King of Bonds,” and his predictions have always received widespread attention in the market.

Last year, he predicted that a recession might arrive in the first half of this year, yet the US economy unexpectedly continued to stabilize. However, the latest economic data appears to show an unfavorable shift.

On Friday, the leading economic index released by the US Economic Advisory Committee indicated that the April indicator declined for the second month in a row. Meanwhile, according to data from the New York Federal Reserve, the Imperial State Factory Index fell further to minus 15.6 in May. This is the sixth month in a row that this value has been below zero, indicating the continued deterioration of economic conditions.

While discussing the latest data, Gundlach expressed concern: “A month ago, major sectors of the economy were growing, but now suddenly there is negative growth in most sectors.” He also believes that the public's reduced reliance on government fiscal stimulus and increased credit card usage may be an early warning of a recession.

Although financial markets remained stable in the absence of major data releases on Tuesday, and the US stock market rose slightly, the decline in treasury yields may indicate that investors' concerns about a future economic slowdown are increasing.

editor/tolk