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'Bond King' Jeff Gundlach on Treasuries
According to Jeff Gundlach, treasuries aren't going to be
terrible investments in the near term. Gundlach made a very
prescient call this time last year when he recommended shorting
Apple and going long natural gas.
Right now Gundlach thinks everything begins and ends with quantitative easing. It creates such a demand for yield that anything with a yield on it is going to continue doing well.
He does not think the Fed is close to stopping and that yield-rich investments will continue to do well.
In reaction to Buffett's comment that bonds are a terrible investment, Gundlach thinks it depends on what time frame you study. He doesn't think that over the next 6 to 12 months treasuries are going to be a terrible investment. Over the next 15 to 20 years, Gundlach says we had better hope that bonds are a bad investment because if they aren't, it means that we have real problems. Video from CNBC:
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