It’s been a few months since Gundlach last held one of his open webcasts for his DoubleLine bond fund. Among other things, it will be interesting to hear his comments on the market meltup, the ongoing dislocation between stocks and bonds, the K-shaped recovery, and of course his thoughts on the next president (Gundlach famously predicted that Trump would win again, with the caveat that a flare up in Covid-19 cases could change the outcome).
Today’s webcast is titled “No End in Sight,” probably a reference to the liquidity firehose unleashed by central banks to prop up stock markets and to make the wealth divide even greater.
Courtesy of Bloomberg, the last time Gundlach made the following observations:
- The Dollar: He is a long-term dollar bear, but said that even in the short-run, the dollar got ahead of itself.
- Treasuries: He expected the yield curve to steepen with 30-year yields rising. He also bet against the TIPS market
- Stocks: Gundlach said the S&P 500 was in “nosebleed territory. This is not a cheap market.” He added the market was the most overvalued in history when looking at market cap relative to U.S. GDP.
- Corporate Bonds: Gundlach warned of a wave of downgrades of BB-rated bonds into the high yield spaces, saying the spread between BBB-rated bonds and BB-rated bonds were historically narrow.
Most recently, Gundlach ominously tweeted that “lots of financial trends are quietly reversing”- we are confident he will dig into this topic as well.
Lots of financial market trends quietly reversing. Will be addressing that in the weeks ahead.
— Jeffrey Gundlach (@TruthGundlach) December 8, 2020