Echoing his comments from earlier this month, ‘Bond King’ Jeff Gundlach warns of an imminent recession – within the next few months – as the yield-curve suddenly steepens…
“The economic headwinds are building, we’ve been talking about this for a while, and I think the recession is here in a few months,” Gundlach said Monday during an interview with CNBC.
“All we really need is the unemployment rate to go higher.”
In fact, the 5s10s spread actually uninverted last week…
“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; 20 but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal.” Matthew 6:19-20
As Gundlach previously noted:
“In all the past recessions going back for decades, the yield curve starts de-inverting a few months before the recession,” adding that,
“I think it’s within four months at the most. Almost every indicator is flipped into high probability. The only one that hasn’t is the unemployment rate.”
Read more @ zero Hedge HERE
