Jeffrey Gundlach, CEO of DoubleLine Capital, anticipates a significant capital shift from the US market to Europe. This forecast is based on potential recession risks in the US by 2025.
Gundlach's Recession Forecast for the US
Gundlach emphasizes the potential recession risks in the US market by 2025, which could trigger foreign capital to move to Europe. He highlights various economic indicators and market trends contributing to this shift.
Impact on European ETFs
In light of these predictions, European ETFs have notably outperformed US equities, with a difference of 16% year-to-date. Gundlach points out that attractive valuations and relative strength of European markets drive this interest.
No Impact on Crypto Market
Despite the capital shift and interest in European assets, no direct impacts on the cryptocurrency market or major responses from key figures in the industry have been documented as of now. Gundlach notes that historically, when the dollar peaks, there tends to be a move towards European equities.
Jeffrey Gundlach's prediction of a capital shift to Europe highlights the importance of changes in global markets. While emerging trends in investments continue to evolve, the influence on the cryptocurrency market remains to be seen.
