Gundlach

World's Top Investors "Ring Alarm" At All Time Market Highs

The big rally in stocks and bonds has some of the world’s top money managers putting up warning signs. Laurence Fink and Howard Marks joined the likes of Bill Gross and Jeffrey Gundlach cautioning that buyers may be getting ahead of themselves... by about 25%.

Frontrunning: July 13

  • Brexit, what Brexit? Shares near 2016 highs (Reuters), Global Stocks Inch Higher (WSJ), Stocks Climb With Copper as Brexit-Induced Volatility Subsides (BBG)
  • Yen under pressure as global stock markets rally (Reuters)
  • Spanish Banks Surge as Fears Subside Over EU Mortgage Ruling (BBG)
  • Pimco Loads Up on Treasuries as Gundlach to Gross Voice Caution (BBG)
  • U.S. Presses China to Be Responsible Power After Sea Ruling (BBG)

Gundlach Gets More Bearish, Says "Big Money" To Be Made On The "Short Side"

As we noted yesterday, in his latest webcast to DoubleLine investors, Jeff Gundlach confirmed the key points from his weekend Barrons which summarized his outlook that "things will get worse in the future, not better." But while Gundlach's skeptical bent has been well-known, we also learned that Gundlach has been actively adding to shorts as the market breaks out to new record highs. Cited by Reuters, the new bond king said that there is "big money" to be made on the "short side."

Global Stocks, Futures Rise On Disappointing Chinese Trade Data, Hopes For More Central Bank Intervention

In an otherwise quiet overnight session, which among other things saw Germany sell 10Y Bunds with a zero coupon and a negative yield (-0.05%) for the first time ever (despite being uncovered with just €4.038BN sold below the €5.00BN target) anyone hoping for a confirmation that China will be able to prop up the world economy once more, was left disappointed when earlier this morning China reported June exports and imports that once again dropped substantially in dollar terms as soft demand at home and abroad continued to weigh on the world’s largest trading nation.

Is Gundlach Still Bearish? Ask Him In His Latest DoubleLine Webcast - Live Feed

The higher the market goes, the more bearish DoubleLine's "bond king" Jeff Gundlach seems to get. Case in point, just yesterday we showed why according to Gundlach, things will get worse in the future, not better. And yet stocks keep going higher (thanks to central banks). So have the new S&P500 all time highs dented Gundlach's skepticism? Ask him yourself during the Q&A in his latest "asset allocation webcast" set to start momentarily.

Supreme Court Justice Ginsburg Continues Her Assault On Trump: "He Is A Faker"

Despite the broad criticism of her comments from both the right and the left, instead of backing out of the stunning verbal duel with Trump, Ruth Bader Ginsburg doubled down: "He is a faker," she said of the presumptive Republican presidential nominee, going point by point, as if presenting a legal brief. "He has no consistency about him. He says whatever comes into his head at the moment. He really has an ego. ... How has he gotten away with not turning over his tax returns? The press seems to be very gentle with him on that."

Why Gundlach Thinks It's Going To Get Worse, And Why He Is "Pretty Sure That Trump Will Win"

"What is really happening here is that there’s massive technological change, and big changes almost always lead to political instability. People who benefit from the old construct are loath to see it change, because they don’t want to lose their power and economic advantage. And so they dig their heels in even harder. That’s what we’re seeing in Britain right now. People who remember the good old days when they had factory jobs and made a good living—that’s been taken away, and they want to do something about it."

Gundlach Reveals His Portfolio Which Is "Outperforming Everyone Else's"

"People say, “What kind of portfolio is that?” I say it’s one that is outperforming everybody else’s. I mean, bonds are up more than 5%, gold is up substantially this year [28%], and gold miners have had over a 100% gain. This is a year when it hasn’t been that tough to earn 10% with a portfolio. Most people think this is a dead-money portfolio. They’ve got it wrong. The dead-money portfolio is the S&P 500."

Weekend Reading: Central Banks Save The World

For now, Central Banks have seemingly accomplished the rescue of the entire global financial system by one again lofting asset prices higher. The problem, however, remains the underlying fundamental issues of weak earnings, slowing economic growth and a collapsing Chinese economy. There is a point, unknown to anyone currently, where the failure of monetary policy will occur.

Gartman: "You'd Have To Hold A Gun To My Head To Be A Buyer"

"I find it very difficult to be anything other than modestly bearish. I trade only from my own account and I am modestly short of equities generally and I think that's the proper place to be. It's a little scary to be bullish at these prices when it's the Fed and monetary authorities who are sponsoring share prices (going) higher – it can't last for very long. If you have to buy, the only place to be a buyer is the U.S. but you'd have to hold a gun to my head to be an aggressive buyer. I'm quietly, modestly net short and I feel reasonably comfortable being that way."

Gundlach: "When Deutsche Bank Goes To Single Digits People Will Start To Panic"

"Banks are dying and policymakers don’t know what to do. Watch Deutsche Bank shares go to single digits and people will start to panic... you'll see someone say, 'Someone is going to have to do something'." Jeff Gundlach said on Wednesday that gold remains the best investment amid fears of instability in the European Union and prolonged global stagnation “Things are shaky and feeling dangerous,” Gundlach said. "I am not selling gold."

Goldman Expects Jump In Mortgage Refis, Blames "Burned Out" Borrowers

Due to the "new lower path for mortgage rates" Goldman is raising their estimate for 2016 MBS Issuance to $1.3 trillion from $1.2 trillion and raising their 2017 MBS issuance estimate to $1.3 trillion from $1.1 trillion. Goldman's  team cut their 10-Yr US TSY estimate to 2% from 2.4% ahead of an expected refinancing blitz.

Gundlach Will Sell European Stocks Into "Remain" Pop; Bashes SolarCity Deal

With cable trading just shy of 1.49, and well above what many banks had expected was the currency's maximum "surge" rebound from last week's lows in the case of a "Bremain" victory, the looming question among trading desks ahead of tonight's official results is whether the market has fully priced in the brexit favorable outcome. According to at least one person the answer is yes. Jeffrey Gundlach said that his firm is considering selling its position in European equities early Friday on a "Bremain" vote