Is Jeffrey Gundlach’s Prediction on US Stock Markets Coming True?

On November 20, Jeffrey Gundlach told Reuters that investors haven’t shown an appetite for Treasuries (TLT) even though US stock markets have fallen. He said, “Obviously, it is not a deflationary bear market, otherwise you would have a bond rally.” Gundlach also advised investors to stay out of investment-grade bonds. Gundlach is concerned that the selling pressure in the US stock markets (IVV) (QQQ) wasn’t accompanied by higher volatility (VIX). Investors should note that the drop on December 4 was also accompanied by higher volumes and volatility.