Search ForexCrunch

Jeffrey Gundlach, Wall Street’s bond king and Founder and Chief Executive Officer of DoubleLine Capital, favors a victory for US President Donald Trump in the election despite the polls contradicted such an outcome.

Key quotes

“The polls right now say he isn’t going to win, but they said that four years ago”

“Mind you, my conviction is way lower than it was four years ago. But back in [that period], when Trump was little more than an asterisk in the betting odds, I predicted he was going to win. This one is much more murky, but in my eyes, it favors a Trump win.”

“Republicans will likely keep the Senate regardless of who win.”

“If Biden indeed wins the election and eventually rolls back or eliminates the corporate tax reduction from 2017’s Tax Cuts and Jobs Act, US equity valuations would increase sharply. But the reduction in after-tax earnings would mean that stock prices would not appreciate. Interest rates, volatility and inflation would also rise.”