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'Sell Everything,' DoubleLine's Gundlach Says

FYI: Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Friday that many asset classes look frothy and his firm continues to hold gold, a traditional safe-haven, along with gold miner stocks.
Regards,
Ted
http://www.reuters.com/article/funds-doubleline-gundlach-idUSL1N1AF1XE

Comments

  • In one of his webcast in 2011, he told audience he had sold all his stock holding around 1150. I don't think his forecast for equity is good. He also has to close a doubline equity fund after poor performance.
  • Didn't he issue a 'sell everything' call a few months ago, too? How'd that turn out?

    Yawn.
  • These are the popular figures that are in charge of billions of dollars ... An investor with a sound, patient, diversified strategy can do better than these personalities over the long term ...
  • @jstr: correcta-mundo.
  • He and Eric Cinnamond on same page.
  • Here is Gundlach's "Sell everything" call from January 13, 2016 when the S&P 500 was around 1880:

    http://www.marketwatch.com/story/gundlach-warns-investors-not-to-be-a-hero-in-this-wild-market-2016-01-13

  • Why do I keep thinking the more a money manager appears on TV (or in the media) as an financial talking head the less useful and/or "correct" their analysis, estimates, calls, or prognostications are?
  • It is a catch22. Being on TV, they have to say something sensational. Because they say something sensational, the TV invites them
  • That means you pop the corn while watching, not the investment account.
  • edited August 2016
    “The artist Christopher Wool has a word painting, 'Sell the house, sell the car, sell the kids.' That’s exactly how I feel – sell everything. Nothing here looks good,” Gundlach said in a telephone interview. "The stock markets should be down massively but investors seem to have been hypnotized that nothing can go wrong."

    Just who is Gundlach addressing here?
    (A) 30-year old workers socking away money in a 401k or buying their first home?
    (B) 85-year old widows living on social security and pension?
    No to the first group and Yes/Maybe to the second.

    I'm always suspicious of these everything or nothing approaches. You're really exposing your *** big-time if you bet wrong.

  • Perhaps there are two types of investors, those who want to get rich and those who want to stay rich? Gundlach, with a net worth of $1.4 billion, is certainly in the latter camp. He can achieve his personal goal by staying high and dry, others cannot. I get the impression from Ed that a number of the other folks in the "stay rich" camp (Mr. Soros and Dr. Druckenmiller among them) have reached a similar conclusion; in consequence, they're more exposed to gold and/or gold miners than to other asset classes.

    The common adage is "being early is the same as being wrong." Perhaps they're more comfortable taking the risk of being that kind of wrong rather than the other kind?

    Just pondering,

    David
  • David, I agree with you on this. Some folks can afford to "sell everything". They already have "everything" and probably do not need to have money at risk anyway. As for Mr. Poobah, the money he makes as a manager of his funds, in addition to the money he makes as an owner of DoubleLine Capital, and gosh know what else, is more than enough to allow him to "sell everything" in his own portfolio, billions of dollars worth that it is. And other posters hit a good point regarding Mr. Poobah's celebrity status and over-exposure in the media. He makes Mr. Gross look like a piker.
  • edited August 2016
    Well-said. Which also underscores the reason for the vast majority of retail investors should IGNORE the whatever-way-the-wind-is-blowing nature of the financial media puditocracy and get their investing analysis from more responsible organizations and sources. Like, oh, I don't know .... MFO, among other places. ;)

    Perhaps there are two types of investors, those who want to get rich and those who want to stay rich? Gundlach, with a net worth of $1.4 billion, is certainly in the latter camp. He can achieve his personal goal by staying high and dry, others cannot. I get the impression from Ed that a number of the other folks in the "stay rich" camp (Mr. Soros and Dr. Druckenmiller among them) have reached a similar conclusion; in consequence, they're more exposed to gold and/or gold miners than to other asset classes.

    The common adage is "being early is the same as being wrong." Perhaps they're more comfortable taking the risk of being that kind of wrong rather than the other kind?

    Just pondering,

    David

  • @MFO Members: I'll take Dan or Kathleen!
    Regards,
    Ted
  • @Ted Her EVBAX was down 17.24% during 2015...quite a wild ride for a "bond" fund. His NEZYX was down 7.42% for the same period
  • edited August 2016
    From my post in January 2016
    EVBAX
    Gaffney increased her exposure to energy bonds overall in the fourth quarter from 11.2 percent to 16 percent, with the fund's bets on high-yield energy bonds increasing from 3.3 percent to 5.8 percent.
    She reiterated a call she made in October to Reuters that a number of her fund's holdings could gain by 30 percent or more over the next two years.
    Investors pulled $856 million from Gaffney's fund last year, slashing the fund's assets by over 40 percent to $780 million from a peak of about $2 billion last February, according to Lipper data.
    Per M* today 8/02/2016
    Category
    Multisector Bond
    Total Assets
    $ 659.2 mil
    Lipper's Tjornehoj said that managers may eventually be right, and energy spreads will narrow. "But by that time they may have very little money in the portfolio to crow about."
    http://www.foxbusiness.com/markets/2016/01/20/bond-funds-remain-confident-as-crude-rout-worsens.html
    Original
    Loomis Sayles Is Bullish On Junk Debt
    http://www.mutualfundobserver.com/discuss/discussion/comment/74133/#Comment_74133
  • you only have to get rich once.
  • TedTed
    edited August 2016
    @Bitzer: Does Kathleen's YTD 14% up count ?
    Regards,
    Ted
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