US stocks continued to slide to start the week, with major benchmarks falling deeper into correction territory.
DoubleLine Capital CEO Jeffrey Gundlach didn’t help sentiment when he said Monday that stocks are “absolutely” headed down below the February lows.
“I’m pretty sure this is a bear market,” Gundlach said, speaking on CNBC. “People like this definition of 20% down is a bear market but that is obviously very arbitrary.”
“It’s more about how you lead into it, how it develops, how it suddenly changes,” the fund manager said of gauging the market. “I think we’ve had pretty much all of the variables that characterize a bear market.”
“Usually something happens that really doesn’t make any sense at all and kind of amazing at how it goes on longer than it should… This time it was cryptos – bitcoin… the way it was being treated was a mania… then it crashed,” he said.
“One after another we start to see various sectors of the global financial markets give it up… then we were down to two stocks … then finally Apple gave it up,” he went on. “That was the last straw.”
“I think this is a bear market and I think we’re going to go below the February lows, almost with certainty,” he said in conclusion.