Real Vision: Finance & Investing Jeffrey Gundlach -- Waiting for the Next Big Trade
12 snips
Nov 14, 2020 In a captivating discussion, Jeffrey Gundlach, CEO of DoubleLine Capital and renowned 'Bond King', shares insights on his evolving investment strategies. He emphasizes the importance of patience while navigating today's challenging market landscape. Gundlach warns of potential insolvencies and trends in deflation versus inflation, expressing skepticism about bitcoin. He highlights managing risk and diversifying portfolios amidst uncertainty, while offering a bullish short-term view on the dollar, despite broader concerns of economic weakness.
AI Snips
Chapters
Transcript
Episode notes
Humble Start, Big Break
- Jeffrey Gundlach got into bonds by accident and quickly outperformed because of his math background.
- Calling the 2007 subprime crisis and deploying capital in 2009 launched his reputation and DoubleLine's growth.
First Loss Lesson
- Gundlach sold 30-year Treasuries at the top in 1986 and later got trapped when he reversed into a losing long.
- That first loss taught him to exit wrong trades quickly: "your first loss is your best loss."
Trade Against Crowded Positioning
- Monitor sentiment and positioning such as extreme call buying before placing macro trades.
- Trade against your structural view when positioning becomes extreme and a shorter-term opportunity arises.