‘Bond king’ Jeffrey Gundlach on recession risks, the stock market that’s a long-term buy, and how often investing pros need to be right to surviveheld a Q&A webcast with DoubleLine CEO Jeffrey Gundlach, the billionaire investor known as the “Bond King.
So all that started happening and then once you buy the new refrigerator, you build the deck or you build a home office, you don’t have to build another home office. And so that type of spending slowed down. And that filtered through into some of the sensitive indicators that are usually good at forecasting recession, like leading economic indicators have been negative for a long time now.
I don’t want to lean too heavily on one month, but the data has not been great. The retail sales were negative last week. ...So, it’s a very uneven economy that way. But I’ve been basically of the belief that the lower parts of the capital structure in investing should be avoided. Triple-C bonds should be avoided unless you like equities because the triple-Cs are going to turn into equity when they default because the default rate is going to be quite high.
One of the things in the investment industry that one has to come to terms with is you’ve got to acknowledge that you’re going to be wrong. Hopefully you’re right more than you’re wrong, but you’re going to be wrong. Most people in the investment business are wrong more than they’re right and they fade away.
Risk management is not about going all in. It’s about second guessing yourself and saying, “When this goes wrong, will I be able to explain it and survive? And that’s why I’m still here.” ...