Gundlach states that the global stock market signals that something bad is happening

Jeffrey Gundlach believes that the US stock market can not move away from global stock markets forever.

Source: FactSet

On Wednesday, the Dow Jones Industrial Average fell by more than 800 points and the S & P 500 by 3.3%, investors worrying about the negative effects of rising interest rates.

The sale took place a day after the 10-year note yield traded above 3.25% reached its highest level since 2011. This occurred about a week after the chairman of the Federal Reserve, Jerome Powell, said in an interview with PBS that the central bank means to obtain neutral rates, indicating a potentially more aggressive path for rate hikes.

IShares MSCI ACWI ex US ETF, which tracks the performance of a rest of the ex-US world. share, is down 10% from this year to Wednesday compared to the 4% gain of the S & P 500.

Gundlach is founder and CEO of DoubleLine. He is known for his strong sense of investing in fixed income markets. DoubleLine has assets under management of more than $ 120 billion, according to its website.