Gundlach on the strategy of cash for longer-term patient capital

Jeffrey Gundlach, chief executive officer of DoubleLine Capital LP, talks about the performance of the U.S. bond and stock markets and investment strategy. Jeff does an excellent job of talking sense in this broad-ranging segment.Here is a direct link.

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4 Responses to Gundlach on the strategy of cash for longer-term patient capital

  1. William says:

    No video on this webpage ?

  2. michael says:

    Probably one of the very best explanations I have seen. Even the hosts , for the most part, actually let him finish a thought.
    Although I somewhat agree with his thoughts on Japan’s need to debase to re-energize manufacturing it may be a double edged sword as it is reliant on growing world consumption and their reliance on imported energy and raw materials. So in the end at best a zero sum game in a deleveraging world.

  3. William says:

    Indeed, a very interesting interview. And he was allowed to fully express his opinions. The “blowdrys” (blowdries ?) were very friendly.
    Gundlach is – IMO – contradicting himself. He doesn’t believe in the effectiveness of QE but at the same time he thinks that when Japan does the same thing it will have a positive impact. Japan has been stimulating (QE) for over two decades with nothing to show for it. But debasing the yen in the current situation will result – IMO – in rising interest rates down the road. (See also Kyle Bass).

    I have a hunch that Gundlach looks at Japan from a different angle. I know that a number of investors have been looking at japanese companies and they see that (a lot of) japanese companies are trading below bookvalue. These companies are considered by some to be “bargains”. But one investment manager has looked deeper into this matter and he sees that these companies are holding a lot of things (to the tune of billions (trillions ?) of yen) on their balancesheets that need to be written off in the coming years. And these “write offs” will (sooner or later) result in large losses. In other words, the stockprices are still (way) too high.

    Remember this scandal ?
    http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/electronics/8969558/Japanese-prosecutors-raid-Olympus-headquarters.html

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