Seeking Alpha

Gundlach: Start of taper could offer buying opportunity in bonds

  • "We're looking for signals that the interest rate increase is over and frankly we don't see that right now," says Jeff Gundlach, expecting the 10-year yield to drift higher to about the 3.10 area. "We went from 'I don't care about volatility and I want income' to 'I don't care about income, I don't want volatility.'"
  • The taper is coming, he says, and the selling surrounding its inception might offer a tasty buying opportunity in bonds. Gundlach made a boner of a bullish call on Treasurys at the start of the summer with the 10-year yielding about 2.1%. There was no inflation anywhere, he said then, and a rate over 2.4% would hit the economy hard enough to have the Fed threatening expanded QE.
  • ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.
From other sites
Comments (3)
  • pauliny
    , contributor
    Comments (4) | Send Message
     
    "boner of a bullish call". Thats a new one!
    29 Aug 2013, 03:53 PM Reply Like
  • bbro
    , contributor
    Comments (10021) | Send Message
     
    I am beginning to think Gundlach is getting paid by the number of forecasts he makes....right or wrong....
    29 Aug 2013, 04:18 PM Reply Like
  • Douglas E. Johnston
    , contributor
    Comments (1773) | Send Message
     
    he's trying to follow in Gross' footsteps....push for a margin/dealer sell-off and swoop in to pick em up .....
    30 Aug 2013, 03:09 PM 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