Will the global economy face deflation once central banks remove their stimulus programs?
Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, believes the answer is yes.
In a recent speech, he remarked, "I continue to believe that there is more deflation in the world than most people appreciate."
Here's an excerpt from an April 10 Reuters article:
Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, said on Thursday the global economy could potentially see a "deflationary scare" again and added that he likes gold as a diversifier.
[He] said: "In Europe, the inflation rate is falling. In the United States ... the inflation rate is lower than it was in 2011." ...
Gundlach said that the economy will likely face deflation once central banks remove their stimulus programs. The Federal Reserve last month said it would reduce its monthly bond purchases, which have been implemented to spur hiring and economic growth, to $55 billion. The Fed started its stimulus program in 2012 and continued until December 2013 at an $85-billion pace.
In the piece, Gundlach also discusses China.
You can read the entire article by following the link below.http://www.reuters.com/article/2014/04/10/us-investing-gundlach-deflation-idUSBREA391QS20140410