Stock markets are likely to struggle early in 2016 before a “buying opportunity” later in the year, Jeffrey Gundlach, co-founder of Los Angeles-based DoubleLine Capital, said in an investor webcast.

Commodities may be reaching a bottom as gold shows signs of rallying, the money manager said. Gundlach, whose $52.3 billion DoubleLine Total Return Bond Fundearned 2.3 percent last year and outperformed 94 percent of its Bloomberg peers, said he expects gold to reach $1,400 an ounce.

Gundlach said global growth might slow to 1.9 percent this year with manufacturing worldwide in a recession. He said the odds of a U.S. recession are about 50 percent if the services sector falls more.

A year ago, Gundlach accurately forecast that oil prices would fall, Treasuries would be little changed, inflation wouldn’t materialize and high-yield debt would face headwinds from lower commodity and energy prices. He wrongly predicted that the price of gold was likely to rise.