Gundlach says big drop at end of last year just a taste of things to come

The S&P 500 rose 2.5 percent last week, its third consecutive week of gain.

The Nasdaq Composite rose 2.4 percent and is now over 20 percent above its December low, thus exiting its bear market.

Then again, Jeffrey Gundlach, CEO of DoubleLine Capital, does not appear to think too much of the 20 percent threshold.

“A bear market has nothing to do with this 20% arbitrary thing,” Gundlach told Yahoo Finance.

“It has to do with something crazy happening first, and then the crazy thing gives it up. And yet more traditional things continue to march on. But one by one they give it up,” he said.

“Bitcoin going from zero to 20,000 in a straight line,” Gundlach said. “It was crazy.”

Gundlach also pointed out that there was a moment that CryptoKitties, collectible cartoon drawings of cats, sold for over $100,000 each. “Of course, they're worth zero today,” he said

Gundlach noted that the global stock market peaked and turned soon after.

Gundlach remarked that from 3 October until Christmas Eve, “there was a pretty big drop.”

“I think that that's just a taste of things to come," he said.