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DoubleLine's Gundlach Says 'Central Banks Are Losing Control'
FYI: Jeffrey Gundlach, the chief executive officer at DoubleLine Capital, said Tuesday that investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks. Regards, Ted http://www.reuters.com/article/us-funds-doubleline-gundlach-idUSKCN0Z02JO
"Negative rates do not prop up stock markets," Gundlach said on the webcast.
... gold and gold miners are still an attractive place to put money to work.
Negative rates don't prop up stock markets, but negative rates do prop up gold markets. I don't quite understand. Is gold appreciation solely due to lost faith in central banks?
"Negative rates do not prop up stock markets," Gundlach said on the webcast.
... gold and gold miners are still an attractive place to put money to work.
Negative rates don't prop up stock markets, but negative rates do prop up gold markets. I don't quite understand. Is gold appreciation solely due to lost faith in central banks?
I don't understand the gold part either. My only guess is the 'traditional store of value' for gold. If you have negative rates; put your money in gold???
I now think deflation is a concern - then gold won't go up.
Mr Gundlach started with this slide.Her artwork makes him dizzy. As does I guess the world's central bankers
Bridget Riley was born in London in 1931. She became best known in the mid-1960s for her dazzling black and white abstract art pieces, exploiting contrast, tension and optical illusions. Her style became known as “op art” for that reason. She featured repeating geometric shapes, inter-locking, developing, vibrating, and tricking the eye into a sense of movement beyond anything seen before in a painting. Central Banks:Get back to reality,not theory. Negative rates are by definition deflationary and part of the problem. Back to the 1800's .Banks will be bled to be cured.Absolutely impossible for banks to be profitable in a negative interest environment. Negative interest rates may go down as the "plague" of the 21st century. "Junk' not expensive ,but sees defaults rising and bankruptcy recovery rates declining. Mr Trump will be elected president.Questioned about the polls and 3-1 chances of that happening". He was 500-1 a year ago,the trend is his friend !" Buying opportunity in risk assets as market fears digest Trumps ascendancy late this summer.
@FundStudent said Is gold appreciation solely due to lost faith in central banks? Gundlach paraphrased::Gold rises with a no confidence vote of central bankers and falls if central bankers are seen as stewards of economic growth and stability without constantly moving the goalposts for interest rate movement. Still forecasts gold to touch $1400 this year. Reiterated long term belief in India. Said Ronald Reagan's slogan in the '80's was "Let's make America great again" and once elected,exploded G'ment spending. Sees this happening with Mr Trump.Helicopter money will be coming ! Wouldn't Mr Gundlach look quite snappy wearing this to Mr Trump's inaugural ! https://www.levinehat.com/collections/bailey-hats/products/bailey-milo-103210
Comments
I now think deflation is a concern - then gold won't go up.
Bridget Riley was born in London in 1931. She became best known in the mid-1960s for her dazzling black and white abstract art pieces, exploiting contrast, tension and optical illusions. Her style became known as “op art” for that reason. She featured repeating geometric shapes, inter-locking, developing, vibrating, and tricking the eye into a sense of movement beyond anything seen before in a painting.
Central Banks:Get back to reality,not theory.
Negative rates are by definition deflationary and part of the problem.
Back to the 1800's .Banks will be bled to be cured.Absolutely impossible for banks to be profitable in a negative interest environment.
Negative interest rates may go down as the "plague"
of the 21st century.
"Junk' not expensive ,but sees defaults rising and bankruptcy recovery rates declining.
Mr Trump will be elected president.Questioned about the polls and 3-1 chances of that happening". He was 500-1 a year ago,the trend is his friend !"
Buying opportunity in risk assets as market fears digest Trumps ascendancy late this summer.
@FundStudent said Is gold appreciation solely due to lost faith in central banks?
Gundlach paraphrased::Gold rises with a no confidence vote of central bankers and falls if central bankers are seen as stewards of economic growth and stability without constantly moving the goalposts for interest rate movement. Still forecasts gold to touch $1400 this year.
Reiterated long term belief in India.
Said Ronald Reagan's slogan in the '80's was "Let's make America great again" and once elected,exploded G'ment spending. Sees this happening with Mr Trump.Helicopter money will be coming !
Wouldn't Mr Gundlach look quite snappy wearing this to Mr Trump's inaugural !
https://www.levinehat.com/collections/bailey-hats/products/bailey-milo-103210