Gundlach: Weighing in on one of the world's more hated asset classes, he says Treasurys aren't...

This news story has 6 comments:

Register or Login to rate comments »

davidshelton Comments (236)
 
Franc, the next shoe to drop....?
8 Jan, 05:08 PM Reply Like

vhulk Comments (2)
 
I think that is controversial to build a relative value argument on US govies comparing them to European debt. There are other instruments out there that are likely to beat the risk-reward ratio of government debt in the next future.
8 Jan, 10:38 PM Reply Like

Johnaudio1 Comments (17)
 
Its all about the real interest rates. Bernake will keep the ten yr 1% below the real rate till inflation is back. It is about jobs and lending. Its not about low risk and a clear path. He is willing to experiment. He is doing something we have never seen. The question is will the "spring board" of expectations turn violently or calmly. It is that simple. If you think violent - short long bonds. (TBT, etc) If you think clamly - stay with TLT till it is obvious the bonds are falling and rates are going up at a rate that will eat his margin. Look for false starts.
8 Jan, 10:58 PM Reply Like

American in Paris Comments (4698)
 
Gundlack opens his mouth without thinking. Yes, I don't like the French system, but US Treasuries are not overvalued with yields below inflation.
8 Jan, 11:09 PM Reply Like

slincs Comments (10)
 
In my previous comment, I think I used the wrong symbol for the short ETF. It should have been TBF
9 Jan, 12:41 AM Reply Like

slincs Comments (10)
 
I'm not knowledgeable about France, except that it is quite socialist and about 50% of GDP is government controlled (I have visited many times). My real comment is that I don't see how we get rid of all the government (central bank) created liquidity without rampant inflation. It seems timing is the big question. I have been long the ETF TFN for a couple of years and it has obviously been the wrong call, but I'm content to wait. My thought is that the interest rates may explode soon which will hammer the TLT. Any comments?
9 Jan, 12:43 AM Reply Like