This doesn’t look good at all…

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Billionaire Investor Gundlach Said Tuesday That a Severe Economic Downturn Is Becoming More Likely

Jeff Gundlach of DoubleLine Capital warns that rising bond yields indicate an imminent U.S. recession. He emphasized the rapidly de-inverting U.S. Treasury yield curve and stated that even a slight increase in the unemployment rate will trigger a recession alert. Historically, an inverted yield curve has foreshadowed every U.S. recession since 1969. Other Wall Street experts also foresee potential economic turmoil due to the bond-market shifts.

Financial Markets Are Breaking

Rising interest rates are destabilizing Wall Street’s outlook. The Federal Reserve’s previous low-rate stance is being upended, leading to significant financial market declines. Banks face major risks from increased government debt. As foreign investors and the Federal Reserve reduce their holdings in U.S. government bonds, fears of an impending recession intensify. Critics argue the Fed’s aggressive actions might necessitate policy reversals.

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