Seeking Alpha

Calling long-dated U.S. Treasurys (TLT, TBT) the most hated asset class in the world (ed:...

Calling long-dated U.S. Treasurys (TLT, TBT) the most hated asset class in the world (ed: They've been so for years), Jeff Gundlach - appearing on CNBC - calls them the one place where you can make money over the coming weeks. "There are no signs of inflation anywhere."
From other sites
Comments (6)
  • Douglas E. Johnston
    , contributor
    Comments (1781) | Send Message
     
    he's starting to sound like bill gross - talking his book - like he knows the direction of interest rates. And even with zero inflation, is a 2.15% 10-year yield to get excited about?
    19 Jun 2013, 12:17 PM Reply Like
  • Tigerpaw
    , contributor
    Comments (19) | Send Message
     
    They are currently severely oversold in plain view of overly bullish, hyper-extended, Fed-induced, over-valued and weakening technicals in equity indexes.
    19 Jun 2013, 12:19 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (360) | Send Message
     
    How much have fixed income managers made over the last 25 years from interest payments vs capital gains? I'd like to know. Anyhoo Gundlach's argument is that 2% is a pretty good return on your money these scary pivot point days. And I would agree if it didn't come with big time risk of huge capital losses when bond prices cave.
    19 Jun 2013, 12:24 PM Reply Like
  • contrarianadvisor
    , contributor
    Comments (1813) | Send Message
     
    Gundlach is looking for an oversold rally but believes we saw the lows in rates last year. I think he is right about the relative attractiveness of U.S. Treasury bonds vs equities but I think he is underestimating the magnitude of the upside. I think we are heading for a global deflationary contraction that will drive rates to new lows. In fact, i think the ten year rates could decline to as low as 1/2 of 1% and the thirty year to near 1%. That would be one helluva rally. The same deflationary contraction is likely to drive equities down sharply. Gundlach is right to argue that the much hated Treasury market may be one of the very few places an investor will be able to make money in the second half of 2013.
    19 Jun 2013, 01:12 PM Reply Like
  • Voice of common sense
    , contributor
    Comments (121) | Send Message
     
    Gundlach has completely lost it.
    19 Jun 2013, 04:19 PM Reply Like
  • fred1724
    , contributor
    Comments (67) | Send Message
     
    Obviously, Gundlach never enters a supermarket. That way he can just revel in the government's lying CPI.
    20 Jun 2013, 10:27 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs