Thursday, January 5, 2012

Jeff Gundlach: Betting on Bonds in 2012

CNBC has crowned Gundlach "The New Bond King." Let's hope that he can avoid the jinx and continue to generate returns even as assets spiral up (now $23B) at DoubleLine.

We believe investors in fixed income and more broadly need a mix of assets with the tail risks that are in the marketplace so fixed income portfolios need to have some credit exposure that would do well if there was higher interest rates ... you also need to have something to do well if the economy doesn't get better and that means you have to have some long-term government bonds.

On indexing:
I hate the idea of indexing and bonds. I think it's sort of crazy because all you're doing is lending more and more money to the borrowers borrowing more and more.

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