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Gundlach Paints Bearish Outlook for 2016 Investing, Economy

  • `Capital-preservation market, not a money-making environment'
  • Weakness in China and junk bonds among the main danger signs
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Gundlach: Stocks to Struggle Before Buying Opportunity

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One of the market’s biggest bears says there’s more bad news ahead.

Falling commodity prices are signs of China’s weakening economy, which will lead to more destabilizing devaluations of the yuan, Jeffrey Gundlach said Tuesday during a market outlook webcast. Moves by the Federal Reserve to raise interest rates are fighting non-existent inflation and hurting gross domestic product growth, he said, adding that stocks are going to follow high-yield bonds down and low oil prices may lead to political instability.