Several months after his last live address to investors in his fund, Double Line CEO Jeffrey Gundlach is holding his latest periodic live webcast with investors, titled “Miracle Grow.”
Readers can listen to the webcast live by clicking on the slide below or the click on this link (registration required).
We will publish the accompanying slides shortly, but until then, here is what Gundlach believes is the “Miracle Grow” pushing the US economy higher: debt, which according to Gundlach shows a remarkable correlation to the S&P.
And while the soaring debt is for now providing a sugar high to the economy, the question is what happens after the next downturn when the deficit – which is already exploding higher – will be off the charts.
Meanwhile, while the economy is humming, the housing market is rolling over as shown in the below chart which shows the responses to the UMich survey whether “it’s good time to buy a house.”
Gundlach is also not very optimistic on the future of the US labor market, where he sees universal basic income as the solution.