Gundlach is the founder of DoubleLine Capital, some remarks crossed the news wires in response to the Federal Open Market Committee (FOMC) decisions today.
- This is one of the best Federal Reserve decisions in a while
- Its the right thing
to not raise rates - We have a lot of
crosscurrents in the economy - Very prudent for the
Fed to have a “wait and see” attitude - Probability for rate
hikes is higher than before recent oil spike - The narrative is
going to develop that there won’t be a hike in November - The unemployment
rate is going to go higher - The economy could
slow down fairly quickly - Treasury bonds are
quite attractive at this moment - The next bond rally
will not last - Think we are getting
near the end of this 10-year rate rise - Quite likely there
will be rate cuts in first half of next year - The equity market is
really overvalued versus bond market - Could make a case to
build a position in commodities
This article was written by Eamonn Sheridan at www.forexlive.com. Source