GUNDLACH: The tower of complex central bank policy ultimately will not stand [SLIDESHOW]

“Central banks around the world have put together a lot of intricate policies,” Jeffrey Gundlach said. “Ultimately, the tower will not be able to stand.”

That was the underlying theme of “Blockhead,” the presentation Gundlach gave to DoubleLine Funds clients.

“Blockhead” is an game that involves players stacking oddly shaped blocks on top of each other until the structure falls.

With this macroeconomic backdrop in mind, Gundlach believes the interest rates will stay low, inflation will remain subdued, the US dollar will go up, and gold could rally to $US1,400 this year.

Gundlach’s presentation is a quick one with eye-opening, hand-picked charts on central banks, inflation, interest rates, foreign exchange rates, demographics, and bond prices. Examine each one if you want to get into the mind of the bond god.

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