‘Bond King’ Jeffrey Gundlach says Bernie Sanders is the biggest risk to the financial markets in 2020

DoubleLine CEO Jeffrey Gundlach said the financial markets might have to brace for a Bernie Sanders scare in 2020.

The so-called bond king believes the independent senator from Vermont is the odds-on favorite to win the Democratic nomination in the 2020 presidential election.

Gundlach said in an investor webcast on Tuesday that the biggest risk to the markets in 2020 is Sanders becoming “more believed in as a real force” that investors will have to take more seriously. “Elizabeth Warren never rose to that,” Gundlach said.

Sanders trails only former Vice President Joe Biden in an average of national primary polls. He sits near the front of the pack in surveys of Iowa and New Hampshire. The 78-year-old candidate is pushing for policies including higher taxes on the wealthy, breaking up big banks and a $15 per hour minimum wage.

“Bernie is stronger than people think,” Gundlach said. “I think it will be taken more seriously as the field winnows. The financial markets broadly will have to deal with the fact that there could be a scare that Bernie Sanders is starting to become a plausible candidate for the nomination.”

Whether Sanders could win the election will largely depend on the economy, Gundlach said, adding people will need to turn more sour on capitalism and fond of socialism for that to happen.

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