In case you missed it, bond legend Jeff Gundlach hosted an epic presentation titled “To QE3 or Not To QE3: That is the Question.”Gundlach answered the question very bluntly. “We’re already doing QE3!” he exclaimed. “We’ve already started.“
He was referring specifically to the buying of long-dated bonds in the Fed’s Operation Twist program.
Unfortunately, Gundlach didn’t have much to say on what he would probably consider to be QE4.
However, he continues to sound alarms on what would happen once the Fed pulls the plug on easing. Specifically, once Operation Twist ends, he expects stocks to sell off.
He ran this chart from Barclays, which Business Insider readers have seen before.
Photo: DoubleLine Funds