Seeking Alpha

Gundlach: Worrying about how the Fed may unwind its policies is a waste of time, he says. The...

Gundlach: Worrying about how the Fed may unwind its policies is a waste of time, he says. The current Fed boss and the putative successor (Yellen) haven't indicated any interest in an exit. With precious metals bears patting themselves on the back of late, Gundlach thinks it's a good time to buy, preferring silver (SLV) to gold (GLD) thanks to the white metal's higher beta.
Comments (7)
  • "I'm only going to have one beer"

     

    -Ben Bernanke
    5 Mar 2013, 05:05 PM Reply Like
  • I prefer "punitive successor." The Fed balance sheet is where bonds go to die - collateral damage of debt monetization is an afterthought.
    5 Mar 2013, 05:09 PM Reply Like
  • No interest in an exit?

     

    What are we, Japan?
    5 Mar 2013, 06:29 PM Reply Like
  • The costs of unwinding their positionwill be an invisible tax on all of us. It will directly impact the Fed when interest rates rise and will be a massive loss to their "capital" and offset by a failure to remit any money to the Treasury - thus raising deficits. Priase to the Banking Brotherhood. One for all and all for one.
    5 Mar 2013, 06:38 PM Reply Like
  • Remember how bank bad debt was going to bury us in an avalanche? Over time, it's just been written off gradually, sold, and revalued upward, disappearing, like the Cheshire Cat, leaving only the grin.

     

    The Fed QE will prove likewise.
    5 Mar 2013, 06:52 PM Reply Like
  • Madoff would be proud. This Fed experiment could leave several investor plums, when interest rates and inflation start moving up. Now the investor question is where to be, least effected intrested rate assets - make sure all your debt is long term and fixed rates, short US Treasury bonds, then inflation try silver, real estate not leveraged, and commodities. Cash and companies with strong balance sheets will be King. Your southern most investor - Key West
    5 Mar 2013, 08:35 PM Reply Like
  • That's not what he said during the presentation! He said the opposite! Did say this might be the time to get into gold... but did not speak favorable about silver.
    6 Mar 2013, 04:50 AM Reply Like
DJIA (DIA) S&P 500 (SPY)