GUNDLACH: These Are The 2 Most Important Slides Of 2012

During his presentation to DoubleLine Funds clients yesterday, bond god Jeff Gundlach spent some time discussing the underlying problems of the U.S. economy.

He drew from charts that showed how real wage growth had been shrinking in the 21st century.  He also noted that many of the new jobs since the crisis have been lower-wage occupations.  Workers have also receiving less benefits.

All of this has caused real spending to fall.

This section of his presentation culminated in two slides which Gundlach said were a pair and were the most important charts of the year.  (It so happens that both originated from Business Insider.)

First was wages as a percentage of the economy, which have been falling for the decades.  Second is corporate profits as a percentage of the economy, which are at record highs.

Basically, corporations have been able to boost profits by paying employees less and less.

It’s no wonder why the title of Gundlach’s presentation was “To Catch A Thief.”

gundlach

Photo: DoubleLine Funds

gundlach

Photo: DoubleLine Funds

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