Market attitudes toward risky assets can best be described as fear and loathing, opposed to a time last summer when investors were willing to stomach the volatility for income, prominent bond fund manager Jeffrey Gundlach said. Per CNBC:

Gundlach said he expects the Federal Reserve will begin dialing back its bond-buying program in September, for example, which he thinks will cause stocks to fall and interest rates to "flush higher."

He also thinks a "period of volatility" will set in post-taper because there won't be this "safety net" to prop up the markets.

To Gundlach, the yield on the 10-year could go to 3.10 percent by year end.