Legendary bond manager Jeff Gundlach is just gave his first presentation of the 2012.
You can see the whole thing here.
A few interesting takeaways:
-Italian yields are high, but they would be much higher if the ECB wasn’t buying bonds.
-The US is a beneficiary of Europe’s problems.
-The S&P 500 ending 2011 where it started can only be described as “eery.”
-The economy would have to be much weaker before we got QE3.
-The biggest surprise of 2011: the strength of the UK bond markets.
-The Indian rupee looks attractive if you’re a contrarian.
-Gundlach “deeply believes” the US dollar (DXY) is headed higher.
-The ugliest chart you’ll see: the Shanghai Composite. A “caution flag for sure.”
-You’re just as well off putting money into a coffee can as you are putting money into Treasuries with <5 year maturities.
-Bond managers who underperformed in 2011–which are most of them–are likely to index in 2012.
-Homeownership rates are headed lower.