The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.US Marketsread more
The combination of mounting recession fears, bets on a more cautious Fed and a regular uptick in market volatility could spell more losses.Marketsread more
The therapy, Zolgensma, is a one-time treatment for spinal muscular atrophy — a muscle-wasting disease and leading genetic cause of infant mortality, affecting 1 in every...Biotech and Pharmaceuticalsread more
SpaceX has raised just over $1 billion in financing since the beginning of the year.Investing in Spaceread more
An analyst for Ark Invest, which has a major investment in Tesla, says recent drastic price-target cuts by others on Wall Street are missing the big picture.Investingread more
A federal judge in California has blocked President Donald Trump from building sections of his long-sought border wall with money secured under his declaration of a national...Politicsread more
Former Foreign Minister Boris Johnson is seen as the bookmaker's favorite to succeed outgoing Prime Minister Theresa May.Europe Politicsread more
The race is underway to find a vaccine that can control African swine fever, a highly contagious and deadly viral infection ravaging China's hog population. There is currently...Agricultureread more
Apple bought Tueo Health, which was developing tech to help parents monitor asthma symptoms in children, using a mobile app and commercial breathing sensors.Technologyread more
DoubleLine CEO Jeffrey Gundlach warned investors Tuesday that the U.S. is unequipped for recession as it becomes increasingly strapped by debt.
"Any thoughtful person would be concerned," the so-called "bond king" said in a webcast. "It's sounding like a pretty bad cocktail of economic risk, and risk to the long end of the bond market."
The billionaire investor said the United States is "out of tools" to gin up the economy during the next recession. He pointed to the Federal Reserve's decision to leave interest rates steady and a dovish turnaround that boosted stocks this year.
The Fed signaled it would not hike rates for the rest of 2019. Even with record low unemployment, "it seems like the economy economy can't handle a 2.5% Fed funds rate," he said.
Gundlach also said most of the U.S. economy's gross domestic product, or GDP, growth boils down to the amount the country borrowed. He likened the spending problem to maxing out a credit card.
"Growth in the economy is simply growth in the debt," he said. "That's what's really responsible for growth in GDP."
In the first quarter, U.S. GDP expanded by 3.2%, according to the Bureau of Economic Analysis. That marks the best GDP growth to start a year in four years. Despite GDP growth and strong employment, Gundlach said the U.S. faces "dangerous" economic times ahead.
The risk of recession within two years is "extremely high," while there's about a 50% chance of recession within a year, he said. In the next six months, Gundlach put the likelihood at 30%.
He doubled down on warnings against corporate bond market. Gundlach said the possibility that a third of corporate BBB-rated bonds would receive downgrades sounds similar to the bundle of risky securities that blew up during the financial crisis.
"It's not that different from subprime," he said. "Don't be picking up dimes in front of a steam roller — the fundamentals are poor and the valuations are high."
In a CNBC interview last week, Gundlach warned that the BBB-rated bond market that is now bigger than the junk-bond market. He pointed to Morgan Stanley figures that "45%, not just of the BBB, but the entire corporate bond market, would be junk right now."
Gundlach runs the $50 billion DoubleLine Total Return Bond Fund. Its five-year performance is one of the best in its category, but lags most of its peers in 2019 with a gain of just 2%, according to Morningstar rankings.
The investor said he expects equity markets to go negative at some point this year, and "end the year with little progress."