“Sanders key role in pushing markets lower”
That’s from a guy running $148 Billion and broke after my post.
Bond king Jeff Gundlach claims Bernie Sanders is responsible for the market sell-off — even as other experts cite coronavirus fear
Feb. 26, 2020, 04:06 PM
Jeff Gundlach, Wall Street "bond king" and DoubleLine Capital CEO, claimed Bernie Sanders' frontrunner status in the 2020 Democratic primary is a reason for stocks' tumbling prices.
"The market is digesting a better than 50% chance of Bernie getting the nomination," Gundlach told CNBC in an email.
The comments are at odds with the numerous economists and analysts pegging the downturn to growing worries that the coronavirus will drag on global economic growth.
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Wall Street "bond king" Jeff Gundlach believes Sen. Bernie Sanders and his surging Democratic primary campaign is to blame for the stock market's recent tumble.
Several economists and analysts say otherwise, pegging the spike in volatility to heightened coronavirus concerns.
The DoubleLine Capital chief executive told CNBC in an email that the progressive candidate's frontrunner status is spooking investors and sending the market into a downward spiral. Sanders is enjoying a hefty lead over other candidates after winning the vast majority of delegates in the Nevada caucus and tying with former South Bend Mayor Pete Buttigieg for delegates in New Hampshire. The senator from Vermont's ascension in the primary race is playing a key role in pushing markets lower, Gundlach claimed.
"If this stock market reversal is due exclusively to the virus, then why is United Healthcare down far more than [the S&P 500]?" Gundlach asked CNBC's Scott Wapner in an email. "Why is healthcare as a sector broadly not outperforming?" Answer to these questions: The market is digesting a better than 50% chance of Bernie getting the nomination."
Read more: Goldman Sachs reveals the 10 best stocks to buy now for a market comeback from the coronavirus-driven plunge
The comment arrives as US stocks turn negative after a brief morning recovery on Wednesday. The move matches the dips seen in global markets earlier in the day and extends a gloomy week for investors exposed to risk assets. The S&P 500 and Dow Jones Industrial Average both wiped out their year-to-date gains on Tuesday after falling the most since 2018 the day prior. The 10-year Treasury bond sank to a fresh record-low on Wednesday as coronavirus worries drove investors to traditionally defensive assets.
Numerous experts have warned the outbreak is more serious than recent stock prices reflected. Equities stood at record highs just weeks ago despite frequent updates showing the epidemic spreading further around the world. Should the virus turn into a global pandemic, Oxford Economics projects the fallout will knock 1.3% — about $1.1 trillion — from world economic growth in 2020.