When Jeff Gundlach speaks, the investing world listens. At the Sohn Investment Conference in New York on Monday, the famed investor and DoubleLine Capital CEO made a bearish call on U.S. stocks.
We’ve been on the other side of Gundlach’s warnings for the better part of six months now.
Shortly after Election Day, Gundlach expressed a skeptical view of the U.S. economy. He called Technology stocks “expensive.” “The Trump win is not positive for consumer spending,” he said. “It's way late to be selling bonds and buying stocks. Probably should be doing the opposite."
We respectfully disagreed.
Technology (XLK) has been our favorite S&P 500 sector since Gundlach expressed his bearish views. Year-to-date, tech stocks are leading the broader index up +14% versus 7% for the S&P 500.
“I have not agreed with Jeff Gundlach this year,” Hedgeye CEO Keith McCullough says in the video above from The Macro Show. “I think I’m going to be right on growth in the back half of the year and he’s going to be wrong.”