NOW WHAT? Another Brilliant Slide Presentation From Jeff Gundlach


Yesterday we liveblogged the latest conference call from DoubleLine Capital’s Jeff Gundlach. The title of his presentation was “Now What?”

Among the key points:

  • It will be a long time before yields rise, although they will rise eventually.
  • It’s natural that Treasuries would rally into a debt ceiling standoff, as the outcome of a failure to raise the ceiling would be sharp austerity.
  • DoubleLine is not betting on ANY recovery in housing.
  • Concentration of wealth is a growing and problematic issue for America. It will most likely be solved by higher taxes (which will also be employed for reducing the debt).
  • Cash and gold are both good options. Silver is not. Avoid the PIIGS and subprime.

The government is hoping for a v-shaped recovery in tax revenues

The debt ceiling is a joke

The government has tried a million things to solve its problems

What government spending looks like

The lack of revenue is a huge problem

Eventually, people will demand higher taxes

Higher unemployment has put huge swaths of the public on food stamps

A look at how credit has performed this year. Everything is higher.

Meanwhile, the PIIGS are crashing!

10-year rates can't stay below 3% without real fear. But getting to 4% will also be tough.

The 30-year has not fallen as much, signalling the start of a LONG bottoming process in yields

Gundlach likes the dollar

Gundlach is no fan of silver, however

The Shanghai Composite is a good leading indicator for US stocks

There's very little alue left in junk

Housing: Gundlach is not betting on any recovery at all

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