Economies in Low Growth, Continue to Cool, Gundlach Tells FuW
(Bloomberg) -- Jeffrey Gundlach, Doubleline Capital CEO, speaks in intv Switzerland’s Finanz und Wirtschaft. Says:
- Yellen has given up dream of normalizing monetary policy
- No rate hike at next Fed meeting, Fed capitulation on rates largely priced in
- Negative rates designed to combat inflation “dumbest idea I’ve ever seen,” bring about opposite what they intended to do; money disappears with negative rates
- Most important investment strategy is to protect money; favors gold to preserve capital, also favors u.s. bond portfolio
- U.S. equities “monstrously expensive;” can’t imagine rally in U.S. stock market goes far, junk bonds will also sag
- Easy part of oil price recovery over, oil will have real difficulty rising to $45/barrel
- Next U.S. elections will “shake political landscape,” real issue is U.S. social security system, Trump will win
- Equity funds that concentrate on supposedly “safe securities” are risky
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers 3492806Z US (Doubleline Capital LP)
People Jeffrey Gundlach (Doubleline Capital LP)
Topics First Word DC - Foreign Policy
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