Jeff Gundlach, the brilliant mind behind DoubleLine Funds, made a name for himself by making some extremely savvy and prescient moves in the bond markets.
However, he has been missing out on the recent rally in the stock markets. “This is a bad time to be deploying money into risk assets,” warned Gundlach during a February 14 presentation.
Yet risk assets like stocks have since continued to rally. The Dow broke through 13,000 and the S&P 500 just closed at its highest level since June 2008.
Is he ready to give in?
Gundlach recently spoke to Reuters’ Sam Forgione:
“It’s an awfully easy decision right now to not be making further investments in risk assets,” Gundlach said.
“The pricing of the market has returned to the levels prior to the scales falling from investors’ eyes regarding the global financial crisis, and I really don’t think that’s appropriate,” he said.
He attributes his steadfast position to his many years of experience. Again, from the Reuters interview:
“I’ve been at this game for about 30 years, and what I’ve learned is that in the world of finance you tend to make money slowly and lose money quickly, and the idea is to not be there when you have potential for downside movement,” he said.