Gundlach somber in tone - sees looming pitfalls

DoubleLine Group CEO Jeffrey Gundlach talks in sagisms. It's compelling in fair measure.

"This is a moment where finally you have a set up where non-US investment -- even if you are a dollar-based investor, you should be thinking about increasing your allocations to non-dollar investments."

[Geographic Diversification]

"There will come a moment where you have to pivot because there will be a response. I'VE GOT MANY IDEAS OF WHAT THAT MIGHT Be -ONE OF THE LEADING CANDIDATES WOULD BE QUANTITATIVE Easing

[Comment: QE aims to lower interest rates across the board. This can be detrimental to retirees who rely on income from fixed-income investments like savings accounts, CDs, and traditional bonds, as their returns will be diminished. With lower interest rates, investors may be pushed into "riskier" assets like stocks in search of higher returns. : QE can lead to a weakening of the domestic currency, which can make imports more expensive. High-quality dividend-paying stocks, Geographic Diversification,Treasury Inflation-Protected Securities (TIPS).]

 

"You would have to buy long-term Treasuries as much as you could because when it gets announced it will be just like corporate bonds in COVID were all of a sudden the market went from down 20 points to right back to where it started in a matter of a few days."

 

"It's a paradigm shift... Gold is suddenly the flight to quality asset. I think gold is a real asset class. It's no longer for lunatic survivalists and wild speculators."

 

"When we had the big selloff in April, we were kind of asleep at the switch, the market was overvalued, we should have been thinking more cautiously."

Then, the investments started up again…just like before…including Mag 7 … and Kramer says he will start covering nuclear and quantum because that is what the younger investors want to hear about, rather than Smuckers]

"One of the hardest things to do in the investment business is to learn and fully appreciate how long everything takes to happen. It takes forever for the problems to show up. It takes forever for the defaults to finally arrive."9

 

"As we all know, as they say in the disclaimers in the commercials, past performance is no guarantee of future results."10

 

"I think there's a lot of overinvestment in private credit and the liquidity is not very good. I would view that as a place for there to be forced selling.”

 

"If you have a cockroach in the kitchen it's never one cockroach. It's always systemic."

 

"The actual strongest driver of investment behavior is need."

 

 It doesn't matter what the price is, you don't have an option. If you have to sell to pay the bills, what will you do?"