"Bond King Jeff Gundlach warns of impending recession as US consumers spiral downward"

DoubleLine Capital CEO Jeffrey Gundlach, known as "The Bond King," warned of a weakening US economy in 2024 and Americans entering a "death spiral" with their personal finances. Gundlach attributed this to excessive government stimulus leading to inflation and increased credit card spending. He highlighted indicators such as an inverted yield curve and plateauing unemployment rate as signs of potential economic weakness in the first half of next year. Gundlach also expressed concerns about high stock valuations and recommended fixed-income investments due to the favorable risk-reward ratio. He cautioned that a rise in the unemployment rate could signal an impending recession.