| NEW YORK, March 22
NEW YORK, March 22 If the U.S. healthcare
legislation overhaul is not passed, or is postponed, it will put
"a lot of doubt" on the "Trump trades," which include higher
U.S. equities and bond yields, DoubleLine Capital Chief
Executive Jeffrey Gundlach said on Wednesday.
"Surveys show that people believe the (Obamacare) repeal is
the most likely part of Trump’s agenda to be passed," said
Gundlach, who oversees more than $101 billion in assets at
DoubleLine, told Reuters. "So if you can’t pass the repeal,
everything else is in doubt for sure."
Investors have been bracing for Thursday's floor vote
scheduled in the U.S. House of Representatives, with safe-haven
securities including Treasuries and gold seeing price gains on
Wednesday. Trump and Republican congressional leaders appeared
on Wednesday to be losing the battle to get enough support to
pass the Obamacare rollback bill.
Gundlach repeated his recommendation that investors would do
better selling U.S. equities into any kind of stock rally and
diversifying into emerging markets. He noted that the iShares
MSCI Emerging Markets ETF has outperformed the Standard
& Poor's Index by over 4 percentage points since early March.
Gundlach said Tuesday's stock-market slump illustrated how
"investors are questioning whether the pro-growth U.S. policies
are really going to happen."
(Reporting by Jennifer Ablan; Editing by James Dalgleish)