From Reuters:
Jeffrey Gundlach, chief executive officer at DoubleLine Capital, said on Tuesday the recent rally in risk assets is nearing an end.
Gundlach, who told Reuters last week that the firm is now considering closing out some of its long positions in the stocks they had purchased in February, said risk assets will struggle in sympathy with oil.
“Oil, like I said, had an easy time rallying from 28 to 38. Now the hard work begins,” Gundlach said. “Oil is the key to everything.”
Gundlach said unless oil rallies another $10 a barrel or more, “a lot of companies are going to go under, which will kill the banking system. The rally off the 200 low (in copper) hasn’t been that impressive, and looks to possibly be over.”
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