Photo: Business Insider
Jeff Gundlach, the CEO of the hugely successful DoubleLine Funds, just completed his latest national webcast.During the Q&A section, he talked about how he thought low-yielding Treasury securities were extremely unattractive.
He argued that the 5-year Treasury security effectively offered “reward-free risk.”
At one point, he said he thought that even Facebook offered a more attractive risk-reward profile.
According to his analysis, he concluded that Facebook would likely return at least 4 per cent in a matter of weeks or months.
So he bought some shares.
14 minutes later, Facebook was up 4 per cent, and he sold.
“14 minutes!” he exclaimed.
His point was that you can easily find better opportunities elsewhere. Surely, this example wasn’t to brag.