Expectations of a swift economic recovery in 2012 are premature, with the sovereign debt crisis in Europe likely to reach a crescendo in 2012, DoubleLine Capital chief executive Jeffrey Gundlach said in an interview published on Thursday.
I've a really hard time with the argument the economy's about to go into some wonderful land of 5 percent GDP growth, Gundlach said according to the Financial Times.
Gundlach pointed to Europe with its banking system and obviously unserviceable debt and U.S. government finances as twin towers of risk, the newspaper reported.
People who are looking for an explosion in bond yields on a better economy are thinking that somehow the world is still in 1995, where we have moderate economic growth, low inflation, stable tax policy and people getting along, the paper reported Gundlach as saying.
Dubbed King of Bonds by Barron's weekly earlier this year, Gundlach is chief executive of U.S. asset management firm DoubleLine Capital, which has amassed about $16 billion since Gundlach started the firm in January 2010.
(Reporting By Alessandra Prentice; Editing by Gary Hill)