You can forgive Jeffrey Gundlach, a long-suffering Buffalo Bills fan, if he has the NFL on his mind now that the team he supports looks like the Super Bowl favorite. The chief executive of DoubleLine Capital says he recalls an ad for Crown Royal whisky, in which a referee tells drinkers to take a water break.
Gundlach says there’s a serious risk the Fed will overtighten, and overshoot on the downside just as it overshot on the upside, particularly as it’s also reducing the size of its balance sheet through quantitative tightening. “Since they’re trying to get [inflation] down 700 basis points, the overshoot may be even bigger,” he says. “Maybe it moves down to negative 4% on CPI, or negative 2%.”
“This is a very good time to buy bonds, and one of the ways I know that, is nobody wants to do it,” he said. Hear from Ray Dalio at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The hedge-fund pioneer has strong views on where the economy is headed. The Federal Open Market Committee rate decision is at 2 p.m. Eastern, with expectations settling that the rate hike will be 75 basis points. Economists at Deutsche Bank expect the dot plot, released at the same time as the FOMC statement, to show a 2022 median fed funds forecast of 4.1%, a 2023 forecast of 4.3% and a 2024 forecast of 3.9%. The press conference with Fed Chair Jerome Powell starts at 2:30 p.m.Dr. Doom — Nouriel Roubini — says stocks may drop 40%.
I bonds which you can only buy 10k a year. Another Drudge Report type clickbait by marketwatch
Bond King says bonds are cheap 😏
And they are going to get cheaper so why buy now?
$AMC $APE DOJCrimDiv LisaBraganca
$AMC $APE HERE'S YOUR CROOKS DOJCrimDiv LisaBraganca
Man, this is old info.
LONGCONVEXITY Talk that book, Jeff. He’s already bought, now he needs you to.
LONGCONVEXITY For those with lower risk tolerance buy loans?! Crazy
Yea, 9% is a better bet if you don’t want to short stocks.
What’s that, the toll bridge he’s selling in New York?
Lie
Who cares about 9% when inflation is equal or higher. That’s a zero return.
Well, apart from the fact that bonds are emploding along with everything else. No a 10year backed by a 30 Trillion🥶 $ debt is not a bond, it's a junk bond.💩
Lots of respect for Gundlach but he's talking his book with leveraged floating rate bank loan funds when he refers to 9% returns. Good luck with that.