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Jeff Gundlach Says Taper Will Wait Till Next Fed Chair
Highly doubtful. You have Yellen, who makes Bernanke look like a hawk and today you have the Minneapolis Fed Governor saying that the Fed should "do whatever it takes" and that more stimulus is not out of the question.
"Moreover, doing whatever it takes will mean keeping a historically unusual amount of monetary stimulus in place—and possibly providing more stimulus—even as: Interest rates remain near historic lows. Economic growth rises above historical averages. Per capita employment begins to rise appreciably. Asset prices rise to unusually high levels, leading to concerns about “bubbles.” The medium-term inflation outlook rises temporarily above 2 percent. It may not be easy to stick to this path.
But I anticipate that the benefits of doing so, in terms of employment gains, will be significant."
Kaminsky: "Many people are worried about the Fed's eventual exit..." Gundlach: "There's no exit. There's no exit. I think it's more likely that the Fed buys all the treasury bonds that exist. I have no concept of what the Fed exit strategy would look like, nor does an investor or viewer need to have a concept, because it's WAY out in the future.The next move in the Fed chess game is not the Fed exiting, it's the Fed continuing."
Comments
http://www.minneapolisfed.org/news_events/pres/speech_display.cfm?id=5168
"Moreover, doing whatever it takes will mean keeping a historically unusual amount of monetary stimulus in place—and possibly providing more stimulus—even as: Interest rates remain near historic lows. Economic growth rises above historical averages. Per capita employment begins to rise appreciably. Asset prices rise to unusually high levels, leading to concerns about “bubbles.” The medium-term inflation outlook rises temporarily above 2 percent. It may not be easy to stick to this path.
But I anticipate that the benefits of doing so, in terms of employment gains, will be significant."
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I'll refer to what Gundlach said on CNBC a year ago:
http://www.mutualfundobserver.com/discuss/index.php?p=/discussion/4044/more-gundlach-cnbc/p1
Kaminsky: "Many people are worried about the Fed's eventual exit..."
Gundlach: "There's no exit. There's no exit. I think it's more likely that the Fed buys all the treasury bonds that exist. I have no concept of what the Fed exit strategy would look like, nor does an investor or viewer need to have a concept, because it's WAY out in the future. The next move in the Fed chess game is not the Fed exiting, it's the Fed continuing."
...That.
I say stay invested.