DoubleLine’s Gundlach: Fed is going to cut rates again, may be at the March meeting

“The Fed is going to cut rates again. Maybe at the March meeting”, Jeffrey Gundlach, Wall Street’s bond king and Founder and Chief Executive Officer of DoubleLine Capital, said in a CNBC interview on Thursday.

Further comments:

The Fed was justified in emergency rate cut

The US dollar is going to get weaker

Sees 10-year yields near lows. You are better off in cash then owning 10-year treasuries at this point

Short-term rates heading toward 0%.

Short-term economic growth will be hit.

The thing you are supposed to own is gold.  Expects gold to go higher. Turns bullish on gold in the summer of 2018.

Says the initial claims will be a key data point to eye. 

The 5 year MA of initial claims is 243,000. If goes above, put a fork in it. 

Also watching consumer confidence.

The JOLT figures have been very weak and may be foreshadowing an uptick in initial claims.

Credit market has been lulled to sleep. 

Fiscal stimulus possible, money “wired” to public.

Thinks Biden is unelectable.

Virus area worse than whatever consensus is.