Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Live blog of Jeff Gundlach's latest webcast

Published 11/15/2016, 04:29 PM
Live blog of Jeff Gundlach's latest webcast
  • Jeff Gundlach has begun his first webcast since the election. Check back here for updates.
  • 4:29: The president-elect does not have a magic wand, says Gundlach. Trump won't take office for a couple of months, and initiatives take time to implement. Couple this with the sharp rise in interest rates, and those hoping for a quick return to speedier growth are likely to be disappointed.
  • 4:33: Looking into the backlash of middle America against the elites, Gundlach says median income has been falling on a real basis since 1973 (that is unless you're a professional or work for the government). Then there's rents - and rent as a percentage of income is soaring, while mortgage payments as a percent of income has been tumbling.
  • 4:35: It's incredible, he says, how the market discounts events. Gundlach notes the FANG stocks began rolling over roughly one week ahead the "surprise" election results. As for the future, Gundlach wouldn't touch any of those names.
  • 4:38: White eyes of inflation? Gundlach posts a chart of four different inflation gauges, and every one of them bottomed a few months ago and have been rising since. Not a fan of TIPS for some time, Gundlach's become one. A full 100% of Treasury holdings in one of his funds are in TIPS.
  • 4:41: Oil? A return to the mid-$20s isn't likely to happen, with a move to the $60s way more likely.
  • 4:42: As for the dollar, he's long-term bullish, but the charts are looking very toppy at the moment. He's looking for a short-term reversal.
  • 4:44: Alongside a long-term bullish view on the dollar, he's long-term bearish on long-dated Treasurys, but in the short term sees the 10-year yield topping out in the 2.30-2.35% area. A near 100 basis point move has already occurred - now's not the time to go all-in on a bearish bond call.
  • 4:55: Bond yields have bottomed globally as well. The move hasn't been as significant as the U.S., but it's pretty clear on the charts.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.