Gundlach: Warnings about Rising Rates and Possible Fed Policy Response

Billionaire fund manager Jeffrey Gundlach said that a “1940s-era central bank policy may make a return if long-dated bond yields continue to rise.” This according to a recent article in Bloomberg. In a recent webcast, the DoubleLine Capital CIO said, “I certainly do expect that Jay Powell would follow through on controlling the yield curve should the 3-year rate really get unhinged.” The article notes that longer-dated Treasuries have sold off in the past few… Read More

Jeffrey Gundlach Excited by Selloff

Bond manager Jeffrey Gundlach describes the recent selloff in markets as ‘exhilarating’ and one that plays ‘right into the DoubleLine wheelhouse.” This according to a recent article in CityWire. In a recent webcast, Gundlach expressed excitement about the opportunities inherent in the current crisis but cautioned investors “against buying in when it appeared markets might be recovering,” adding “I’m getting less negative on the stock market…but things have to clean out and are going to… Read More

Gundlach: Lower Recession Odds and Credit Warnings

Bond manager Jeffrey Gundlach says the odds of a recession are lower and advises investors to avoid corporate debt due to a weaker dollar. This according to an article in Bloomberg. The article reports that after predicting a 75% chance for recession in September, last month Gundlach lowered his forecast to a 35% chance of recession by the end of next year. In a recent webcast, he explained that his view is “based upon consumer… Read More

Gundlach: Modern Monetary Theory ‘Complete Nonsense’

An article in Bloomberg reports that in a recent webcast, DoubleLine Capital’s Jeffrey Gundlach characterized modern monetary theory (MMT) as “a completely fallacious argument.” Gundlach joins a group of critics of the concept– that the U.S. can’t go broke because it borrows in its own currency and can print dollars to cover its obligations—asserting that the idea is “ridiculous…What happens when the economy turns down?” He suggested that it could lead to a “significant boycott”… Read More

Gundlach Favors a Gold Stock Fund

At the Barron’s 2019 Roundtable held last month, Jeffrey Gundlach of DoubleLine Capital shared some insights: According to Gundlach, there has been an expectation by many that the dollar would go up because of the Fed’s planned rate increases. But while the Fed predicted two such increases in 2019, Gundlach says “the market is expecting virtually none. I think the Fed is already showing signs of capitulation, and so it’s likely that the dollar will… Read More

Gundlach Says U.S. Debt is “Horrific”

During his annual “Just Markets” webcast last month, DoubleLine Capital chief investment officer Jeffrey Gundlach called the growth of U.S. national debt a “horrific situation,” likening it to “every household in America maxing out three $5,000 credit cards.” This according to an article in Bloomberg. Here are some other insights Gundlach offered during the webcast: Some recession indicators, such as junk bond spreads, consumer expectations and homebuilder confidence, are “flashing yellow;” If the U.S. dollar… Read More

Gundlach Warns Corporate Bond Investors

An article in Advisor Perspectives gives an overview of comments by DoubleLine Capital chief investment officer Jeffrey Gundlach regarding the corporate bond market. In a podcast last November, Gundlach reportedly argued that the corporate bond market is facing excessive debt and an oversupply of bonds, and believes that “spreads and debt levels are out of sync with one another.” As a result, the article reports, “both corporate and high-yield bonds are at or close to… Read More

Gundlach Says Don’t Focus On the 10-Year Treasury

On a recent investor call, DoubleLine chief investment officer Jeffrey Gundlach argued that investors are wrongly focused on the 10-year Treasury yield breaching 3%, that instead they should be paying attention to whether the  30-year “long bond” goes above 3.22%. This according to an article in Advisor Perspectives. If the 30-year bond rises above that level, he said, “then the 10-year yield will break out upwards,” potentially quickly breaching the 4% mark, which could be… Read More

Jeffrey Gundlach’s Market Worries

 DoubleLine Capital CEO Jeffrey Gundlach, who “sounded alarms about housing in 2006” doesn’t see any disasters in the offing, according to a recent article in Barron’s. “But that’s no reason to relax,” the article adds. The article outlines comments from an interview with the celebrated bond-fund manager. Here are some highlights: “Periodically,” says Gundlach, “the world is afflicted by mass psychosis,” alluding to the subprime mortgage crisis and the dot com bubble. He cites the cryptocurrency… Read More

U.S. Market Gurus Say Calm is Illusion

Several stock market gurus are “looking at the risks that still lie ahead in the current relative calm,” according to a recent article in Reuters. The article cites comments from experts such as Jeffrey Gundlach who “had been warning for more than a year that markets were too calm.”  With regard to the correction that occurred earlier this month, Gundlach said, “Do you honestly believe today is the bottom?” “Many strategists have been bullish about… Read More