New York (HedgeCo.net) – Just yesterday we featured an article about Aberdeen Asset Management Plc considering adding to their equity allocation amidst the selling that has taken place recently.

Apparently DoubleLine Capital’s Jeff Gundlach doesn’t agree with that approach. In an interview with Reuters on Monday, Gundlach warned that U.S. equity markets are in for another round of severe selling, adding that “The U.S. stock market is in a mode of uncertainty, at best, you don’t correct all of this in three days.”

Gundlach pointed to the move by China to devalue the yuan as “kind of the exclamation point of corroborating the fact that global growth is subpar.”

Gundlach has been on record stating that he thinks a rate hike by the Fed is a bad idea and points to subpar growth as the reason. In a recent interview with CNBC he pointed out that if you looked at a chart of GDP independently, you wouldn’t even consider raising rates, but rather you would more likely think rates might need to be cut.

Rick Pendergraft
Research Analyst
HedgeCoVest