Brian Chappatta, Columnist

Gundlach Compares Recent Buy-the-Dip Mentality to Subprime Crisis

DoubleLine’s chief investment officer warns about complacency in stocks, high-yield bonds and bank loans.

January 9, 2019 at 10:00 AM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Jeffrey Gundlach has a history lesson.
Photographer: Kholood Eid/Bloomberg

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

Jeffrey Gundlach is worried that investors are getting suckered into buying the dip in stocks, high-yield bonds and leveraged loans.

In his annual “Just Markets” webcast on Tuesday, DoubleLine Capital’s chief investment officer sounded off on a range of topics, including Bitcoin, Federal Reserve Chairman Jerome Powell’s “pivot,” the growth of the U.S. national debt, and the problem of underfunded state and local government pension plans. But it was the “BTFD”1 mentality that’s lasted for so long in risky corners of the financial market that had him drawing comparisons to the subprime mortgage crisis. He explained his chief cause for concern: