Famous Investor Shared His Dollar and Stock Forecast

The famous investor shared his dollar and stock forecast. Jeffrey Gundlach maintained his negative stance on the US dollar.

Jeffrey Gundlach, CEO of DoubleLine Capital, stated that the government's excessive stimulus in the US helped the Chinese economy, inflation expectations were not different from the 1970s and predicted a decline in the US dollar in the long run. Speaking on the DoubleLine Total Return Bond Fund's webcast Wednesday, Gundlach voiced his criticism of the massive public incentives in the US. The famous investor, who recently pointed out that one-third of personal income comes from transfer payments, noted that a lot of money is "spilled" in the system. Famous investor Gundlach said that US government spending has served the Chinese economy since 1997. Underlining that the inflation expectations among consumers are not much different from the 1970s, Gundlach stated that the PCE data has seen levels not seen since the 1990s. The famous investor Gundlach, who observed no change in his negative predictions about the dollar, announced that the 85 level was support for the Dollar Index (DXY). Emphasizing that the US dollar is neutral in the short term, the famous investor said that the positive divergence seen in the US stocks since 2005 has come to an end and he predicts a rise in European stocks.