DoubleLine's Jeffrey Gundlach predicts US recession and Fed rate cuts in coming months.

DoubleLine Capital CEO Jeffrey Gundlach predicts that a recession will hit in a few months, forcing the Federal Reserve to cut rates "a couple of times" this year. Gundlach warns that cutting rates in this inflationary environment will weigh on already high price pressures. He advises reducing risk on strength, which means selling equities into rallies. Gundlach also warns of potential liquidity issues and recommends keeping an eye on the gap between T-bill and banking system rates. Despite the Fed raising interest rates, Gundlach believes gold deserves a role in portfolios at $1,800 type dollar price.