Photo: Morningstar via YouTube
DoubleLine Funds’ Jeffrey Gundlach just wrapped up another one of his extremely popular webcasts. The title of his presentation: “To Catch A Thief.“
Gundlach continues to be concerned with budget deficits and elevated debt levels. He argues that the fiscal cliff problem did not come about because of the 2011 debt ceiling deal. Rather, it’s the result of years of deficits.
He also unveiled a new trade: short the yen, long the Japanese stock market.
Gundlach believes that Japan will pursue currency debasement. He sees the Nikkei 225 soaring by as much as 3,000 points next year because of this.
He also noted that the real problem with debt these days is student debt. Student loans are now bigger than credit card debt, delinquencies are on the rise, tuition is inflating like crazy, and earnings for young people are falling.
During the Q&A, Gundlach also said that he was worried about U.S. interest rates surging. If they have to, “the Fed can buy all of the bonds.”