Bond king Jeffrey Gundlach: Here comes the hard economic landing

2.23.23 - Here comes the hard economic landing

Gold last traded at $1,822 an ounce. Silver at $21.32 an ounce.

Bond king Jeffrey Gundlach: Here comes the hard economic landing -Yahoo! Finance

The bond king is bracing for a hard economic landing.

"We have been preparing for a hard landing at DoubleLine," DoubleLine Capital founder and CEO Jeffrey Gundlach exclusively told Yahoo Finance Live.

Gundlach says his investment firm has been girding for such a scenario - a period of very weak economic growth fueled mostly by aggressive Fed interest rate hikes and stubbornly high inflation - for several quarters by increasing exposure to relatively safe Treasury securities.

Ultimately, Gundlach said he thinks it doesn't matter if there is a "soft" or "hard" landing. He said it's likely markets are on the cusp of having to digest a sharp economic slowdown - and they are ill prepared to do so.

"People are always asking me this question: how bad the recession is going to be. It doesn't matter as long as we're going into recession. You have to have certain degree of protection," Gundlach said.

He added: "In either case, you need an umbrella."