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‘Sell Everything’ DoubleLine’s Gundlach Says!

  • ‘Sell Everything’ DoubleLine’s Gundlach Says!
    by Reuters, via http://www.cnbc.com/ 
    Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Friday that many asset classes look frothy and his firm continues to hold gold, a traditional safe-haven, along with gold miner stocks.

    Noting the recent run-up in the benchmark Standard & Poor’s 500 index while economic growth remains weak and corporate earnings are stagnant, Gundlach said stock investors have entered a world of uber complacency.

    The S&P 500 on Friday touched an all-time high of 2,177.09, while the government reported that U.S. gross domestic product in the second quarter grew at a meager 1.2 percent rate.

    “The artist Christopher Wool has a word painting, ‘Sell the house, sell the car, sell the kids.’ That’s exactly how I feel sell everything. Nothing here looks good,” Gundlach said in a telephone interview. “The stock markets should be down massively but investors seem to have been hypnotized that nothing can go wrong.”

    Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine, said the firm went “maximum negative” on Treasurys on July 6 when the yield on the benchmark 10-year Treasury note hit 1.32 percent.

    “We never short in our mainline strategies. We also never go to zero Treasurys. We went to lower weightings and change the duration,” Gundlach said.

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August 2, 2016 - Posted by | Economics | , , , , , ,

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