Jeff Gundlach said forCNBC
on Tuesday that the recent rally in the S&P 500 has characteristics of a bear market rally. He believes that we are still not out of woods and he sees a potential 20 percent decline in the S&P 500, while he limits a possible upside at 2 percent. Gundlach is skeptical about China's ability to reach a growth forecast of 7 percent and he doesn't believe that the U.S. profits can rise with revenues stagnant and wages and rates rising. The only asset that Gundlach sees rising is gold. He has a long position in gold and he thinks that it is going to 1,400. He has been long for a while, but he wouldn't be adding to the position at current levels.
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