Jeffrey Gundlach, chief investment officer of
The market, credit and housing crises could continue for years, and the Standard & Poors 500 Index could decline another 30%, he warned. Defaults on prime mortgage loans could soar from 2% to as high as 10%, he said, calling the fallout sheer carnage.
If its like the Depression experience, and it sure is shaping up that way, it could take several years for the decline to continue, Gundlach said. Maybe we wont see a bottom in home prices until 2014.
However, he is bullish on and recommends buying the stocks in
Risk aversion is the order of the day, he said.