Ch 11 News S1 E6: A Look Ahead to 2021, Part 2

DoubleLine’s Ken Shinoda and Sam Garza close out 2020 with a look at what could be in store for investors in 2021. This episode of Channel 11 News was recorded Dec. 17, 2020. After reviewing the historic challenges of 2020 and the economic fallout of COVID-19 in Part 1, Messrs. Shinoda and Garza discuss potential issues in the new year, including inflation’s possible return, yield caps by the Federal Reserve, the financialization of the U.S. economy and the growth-versus-value rotation. A rebound in energy markets, Mr. Garza says, could prove the catalyst for inflation doubling to the mid- to high 2% by midyear and then declining. “I think it’s really interesting to think about the trajectory of inflation over the next four or five, six months,” he notes, “and what that might mean for interest rates and sort of the tone of the market and the sentiment of investors in general.” 2021 could also usher in a weaker U.S. dollar. “Our thoughts are the dollar will get weaker over time,” Mr. Garza says. “And if everyone’s (reacting to) that at once, it may be play out most against real assets, gold, equities, things like Bitcoin.” • This material contains the opinions of the manager as of the date it was recorded and such opinions are subject to change without notice. • The material represents DoubleLine’s intellectual property. No portion of this presentation may be published, reproduced, transmitted, or rebroadcast in any media in any form without the express written permission of DoubleLine. To receive permission from DoubleLine, please contact [email protected]. • The views and forecasts expressed in any materials on this website are as of the date indicated, are subject to change without notice, may not come to pass and do not represent a recommendation or offer of any particular security, strategy, or investment. DoubleLine has no obligation to provide revised assessments in the event of changed circumstances. There can be no assurance that the strategies described will achieve their objectives and goals. • DoubleLine® is a registered trademark of DoubleLine Capital LP. • ©2021 DoubleLine