Photo: DoubleLine Funds
Jeff Gundlach just gave another fantastic presentation. The title: “To QE3 or not to QE3: That is the Question.”His answer: “We’re already doing QE3!” he exclaimed. “We’ve already started!”
Gundlach was referring to the Fed’s Operation Twist.
On interest rates, he believes the Fed will keep rates low for a long time since raising rates could be catastrophic. The only way the Fed would raise rates is if “real inflation” rises significantly.
Click Here To See Gundlach’s Presentation >
Natural gas is his best investment idea. “It’s like investing in gold in 1997,” he said. DoubleLine’s Multi-Asset Growth Fund has been increasing its exposure to the commodity.
“Natural gas is challenged for sure,” he warned as he doesn’t expect the investment to be a smooth ride.
However, he reiterates that it is a longer term investment. He had an excellent piece of wisdom on the matter: “In risk assets, you make 80 per cent of your money 20 per cent of the time.”
The middle portion of the presentation was led by Jeff Sherman, DoubleLine’s commodities portfolio manager. Sherman, a veteran of TCW like Gundlach, clearly thinks like the bond god.
On buying and selling assets, he believes, “It’s better to be three hours too soon than one hour too late.”
Gundlach thinks that the biggest risk to stocks continues to be Europe. He slams all of the current eurozone rescue plans as “ludicrous.”
As usual, he covered much more ground in his presentation.
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