The U..S. bond market isn't just facing an increased calendar of treasury bond sales in the next few years. A big wave of corporate bond refinancings is also on the agenda.
Gundlach voiced concerns about the expensive price levels of both investment-grade debt and junk bonds. The good news is that junk bonds are not signaling a recession.
Early this year, Gundlach predicted that the S&P 500 would end 2018 lower at year-end for the first time in a decade. He maintains that view. One-year Libor rates now stand at 3 percent, substantially higher than the yield on the S&P 500.
If there is a major area of opportunity at this late stage of the economic cycle, it can be found in commodities. In the final years prior to previous sessions, this asset class has often generated outsized returns, he told attendees.