President Obama once joked that when all else fails he could always rely on his pillar of strength, uber-pollster Nate Silver. Many investors believe that when everything in the global economy looks bleak, citizens across the planet can always count on the U.S. stock market, right?
Not so fast. After a handful of mega-cap super stocks like Amazon, Facebook, Google and Netflix, most stocks are going two places—nowhere or down. “The breadth of the equity market is unbelievably bad,” Gundlach said. In his view, it might be the worst ever.
If there is any value to be found out there, Gundlach urged investors to look at closed-end funds selling at big discounts.