DoubleLine CEO Gundlach: Been bullish on gold all year, but it need to take a break

But are rates then done for the most part going up if you think things economically are going to weaken a bit from here? My, my game plan remains the same. And that is that rates of rates peaked for this cycle back in what October of 2022, I guess it was or 2023, but 2023 they, they, they peaked and I thought they would start falling as the inflationary came down. And that happened. And I think we've seen the peak for this cycle in the long, longer term bond yields and probably in the Fed funds rate. But I do believe that when the next recession comes, the Fed will act much more aggressively than they, they think they will. And I think that it will be problematic and that we will see significant reactions to at the long end to inflationary fears and excessive Treasury supply. The one thing that's helping the bond market and what hurt the bond market last October was there was tremendous net supply. There was auction after auction and the bond market couldn't digest it. That's down a lot right now. So there the supply problem in the near term isn't that bad. But I think in the economic weakness that will come one day, it's like waiting for Godot, you know, waiting for the economic weakness. But when it when it comes, I think we're going to have a scare on the government reaction being inflationary again. You still sound skeptical that Powell is going to be able to pull this off, that they're going to get the soft landing that the market seems to be placing its its high hopes on. Are you still looking for a recession? Yes, it's a question question of when it's it's been a long time coming. Many of the recession indicators flagged a year or two years ago, but this was a crazy cycle with with all that government spending and then the retraction of the liquidity. But I, I, I felt like Powell himself was less confident today than I've heard him. I, I'd say in about a year. Interesting he because he, he, he, he seemed, he seemed to have some mojo back in November. And I think he seems to be pretty confident. The earlier meetings this year, this one, this was, this was like an economist talking, not a, not a private equity guy, which is more of his background. You know, he's, he's sort of like on the one hand, this on the other hand that I don't know what to look out. It's not one thing. It's I, I just felt like he did. He said almost nothing today. So doesn't he have to balance the, the balance, the he, he has to balance the risks, right? He sure, but he, but he said that specifically about cutting too late. But he's cutting too early. But but clearly in in past meetings, there's been there's been meetings where he's shown up more hawkish than people thought, more dovish than people thought. This one, he didn't. He just seemed a little bit wanted to keep all of his options open. So that's why I think Steve is honest up there. Says I'm not even sure that they're truly biased to cut. They're sort of biased to biased to be biased to cut is I think where they are. Let's run through a few investment ideas. Gold. We talked about it before. Yeah, I've been bullish on gold all year. It had coming off one of its, its worst day in some three years. Well, that was the that was the employment report. Yeah. But and it's back up to, you know, 2300 plus handle. It's still quite strong. It's a 1517% year to date. I just think it needs to take a break. I mean, it went up over 20% in in about four months. So that to take a break. But I, I believe gold is a Geo worldwide economic thing, central bank thing. I think it has to do with worldwide indebtedness. And I think, I think gold should be accumulated on weakness for sure. And even at the level today, I think it's worth dollar cost averaging. I've I own gold, I've been I've been positive that was that was my real asset pick at our double on round table prime first week of January. I had no idea it was going to go up so much. But that's what that's why markets work, you know?