doubleline capital<u+2019>s jeffrey gundlach said donald trump, if he<u+2019>s elected president, would help the u.s. economy recover by going further into debt, just as ronald reagan fueled growth in the 1980s.









<u+201c>trump is going to win, and trump is going to increase the deficit,<u+201d> gundlach said during a panel discussion thursday in new york. reagan <u+201c>did it by taking three or four decades of stable nonfinancial debt-to-gdp ratio and putting it on a hockey stick higher.<u+201d>









gundlach, 56, isn<u+2019>t endorsing any candidate, according to loren fleckenstein, a doubleline analyst. the fund manager, who has been predicting a trump election victory since february, noted that trump<u+2019>s campaign slogan, <u+201c>make america great again,<u+201d> resembles reagan<u+2019>s <u+201c>let<u+2019>s make america great again.<u+201d>









under reagan, the u.s. debt grew to more than $2.3 trillion at the end of 1988 from $807 billion eight years earlier, according to data compiled by bloomberg. the total u.s. debt as of dec. 31 was $15.1 trillion.









markets might not react favorably to a trump election at first, because the republican presidential candidate has criticized international trade agreements, according to the fund manager.









<u+201c>first, i think you<u+2019>re going to get a global growth scare, trade-based,<u+201d> gundlach said. <u+201c>that could cause a market rollover which to me looks like it<u+2019>s already under way.<u+201d>









this retreat in the s&p 500 index could be <u+201c>an excellent buying opportunity,<u+201d> gundlach added, as the debt binge <u+201c>will probably stimulate growth, at least temporarily.<u+201d>









the s&p 500 is down about 0.6 percent since trump<u+2019>s victory tuesday in the indiana primary. his win prompted his two remaining republican opponents, texas senator ted cruz and ohio governor john kasich, to suspend their campaigns.









<u+201c>when i say donald trump<u+2019>s going to win, it<u+2019>s not that i<u+2019>m wildly rooting for him, although i don<u+2019>t dislike donald trump,<u+201d> gundlach said in an interview with fox business network<u+2019>s <u+201c>wall street week<u+201d> set to air friday at 8 p.m. new york time. <u+201c>it<u+2019>s just like, i think it<u+2019>s going to happen.<u+201d>









on the panel discussion, gundlach said oil prices must get to $60 a barrel to avoid a wave of high-yield debt defaults, a price he doesn<u+2019>t expect to see soon. he predicted more junk-bond defaults when borrowers are forced to roll over debt in a rising interest-rate environment by 2018 or the following two years.









gundlach said he continues to be long on gold. spot gold was trading at about $1,277 an ounce as of 6:48 p.m. thursday in new york, up 20 percent this year. in january, gundlach said he expected gold would climb to $1,400.
gundlach: trump would use debt like reagan for growth
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