Jeffrey Gundlach says we face a financial tipping point from the “exploding” national debt. The founder of DoubleLine Capital passionately warned investors and policy makers about the need to take action now. Will the “muscle memory” markets developed after 2008 protect them in 2019? Liz Ann Sonders and her team at Schwab take a look at the risks for investors in the coming year. Not everyone is putting too much stock in the 2019 forecasts, however. Adam Grossman of The Humble Dollar offers investors reasons to be cautiously skeptical.
Gundlach’s Forecast For 2019 — Jeffrey Gundlach is the founder and chief investment officer of Los Angeles-based DoubleLine Capital, a leading provider of fixed-income mutual funds and ETFs. In his most passionate comments ever on this topic, he said the exploding national debt and liabilities involving pension funds, state and local government governments and Social Security have reached a stage that is “totally unthinkable.” Read more…
Schwab Market Perspective: Keeping Calm In The Chaos — Stocks have taken a beating over the past few months in what Schwab has been describing as a rolling bear market, but Liz Ann Sonders and her team don’t see a repeat of 2008 developing. Read more…
Paper Tigers — Adam Grossman of The Humble Dollar writes, “If forecasts are so error-prone, why do sensible organizations like Vanguard continue issuing them? In part, I believe it’s in response to investor demand… But now that you’ve seen the data, here’s my recommendation: Tune out anyone who approaches you with a crystal ball. Instead, situate yourself so the market’s short-term ups and downs don’t impact your ability to meet your financial goals—or to sleep at night.” Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller
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