Billionaire Investor Gundlach Foresees Recession, Recommends Cash Over Overvalued Stocks: 'Skip This Last Phase Of The Exuberance Game'
Portfolio Pulse from Rounak Jain
Billionaire investor Jeffrey Gundlach warns of an inevitable recession and advises investors to hold cash over overvalued stocks. He expresses skepticism about current market valuations, particularly the S&P 500 and tech stocks like Nvidia Corp. (NVDA), which have seen significant increases. Gundlach cites the inverted yield curve and the Leading Economic Index's downward trend as indicators of a looming recession and suggests the Federal Reserve should cut interest rates.
January 27, 2024 | 7:09 am
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Jeffrey Gundlach specifically mentions Nvidia Corp. (NVDA) as an example of tech stocks with high valuations, suggesting that its current market capitalization of $1.5 trillion is indicative of an overvalued equity market.
Gundlach's comments on the overvaluation of tech stocks, specifically mentioning Nvidia, could lead to a negative sentiment among investors regarding NVDA's stock in the short term. His status as a prominent investor and his bearish outlook on the market could influence market perception and potentially impact NVDA's stock price negatively.
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