Bond God Jeff Gundlach Is The Latest To Slam PIMCO's "New Normal"


Cheeky headline on Bloomberg today: Gundlach Sees ‘No Normal’ While Beating Bill Gross Since 1995.

What? There’s another bond genius that isn’t on TV all the time? Indeed.

TCW Total Return under Gundlach averaged gains of 7.5 per cent in the five years ended Dec. 4, topping Pimco Total Return Fund, which rose 7 per cent in the same period. The TCW fund also beat Gross in the 10- and 15-year periods. He’s the only intermediate-term bond manager to post higher returns than Gross, 66, in each of the three periods, according to Chicago- based Morningstar Inc.

Anyway, he thinks the PIMCO phrase is nonsense.

“I think ‘no normal’ is a good phrase, as opposed to ‘new normal,’ ” Gundlach, chief executive officer of DoubleLine Capital LP, said during an interview in his office in Los Angeles. “Some major policy shift has to happen that will turn everything on its ear. So this idea that we’ll go into some quasi-similar paradigm, some sort of new thing — no way.”

The last guy we saw bash the new normal was Ken Fisher, though mainly that’s because he’s still super-bullish.

As for the the policy shift that will turn everything on its ear, it will probably have to do with deficit reduction and tax hikes.

Read the whole story at Bloomberg >

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