“Bond god” Jeff Gundlach just concluded a very interesting webcast.
His presentation — titled “What If?” — examined the big stories in the global markets and economy.
He spent more time than usual talking about the problems in the emerging markets. And he singled out India as the country most vulnerable to a crisis due to heavy reliance on foreign capital.
He thinks the best way to trade India would be to short it while go long China or Russia, which are both insulated from the external capital markets.
Gundlach continues to believe interest rates will be low, and he doesn’t see inflation/stagflation happening any time soon until commodity prices start to rise more.
On Federal debts and deficits, Gundlach thinks that one way to address these issues is to raise the marginal tax rate.
As usual, Gundlach supported all of his views with a brief presentation featuring his hand-picked charts. Anyone who wants to understand how the “bond god thinks” should spend a few minutes on this.
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