Bond King Jeffrey Guru: Stock Yields ? Bond Yields

Bond King Jeffrey Guru: Stock Yields ? Bond YieldsWhy a sustained credit rally is likely, and why you should not sell bonds for equities, with Jeffrey Gundlach, DoubleLine. “There is a huge loss eminating from Europe,” he says. “Avoid Europe; avoid banks.”

“Junk bonds are actually cheap now. They’ve gone from the richest [valuation] in history to a massive underperformance versus government bonds.”

“What you do is you compare the returns of one index versus the other, versus a sort of historical trend.”

Einhorn’s FOF Re-positions Portfolio, Makes New Seed Investment In Year Marked By “Speculative Exuberance”

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasIt has not just been rough year for David Einhorn's own fund. Einhorn's Greenlight Masters fund of hedge funds was down 3% net for the first half of 2020, matching the S&P 500's return for those six months. In his August letter to investors, which was reviewed by ValueWalk, the Greenlight Masters team noted that Read More

“We were two standard deviations rich on that basis in March or April, which is the worse ever. And now you’re actually one and a half standard deviation cheap.”

“This thing is going to get a little bit cheaper, particularly as we move forward and rethink the earnings and default situation, which won’t be an eminent turnaround.”

“But when you think about late 2012 or 2013, you’re going to be facing higher default rates and it’s just not that likely that you’re going to get a sustained rally in credit when defaults are about to move to the upside,” he went on to say. “So it’s a lot trickier now.”

“We hated [buying emerging makets in local currencies] at DoubleLine, and there’s just been a blood bath in that area in the past month,” he said. “And … what I don’t like about [dividend-paying stocks] is it disrespects the obvious mismatch in volatility.”

“Avoid Europe, avoid banks, no invests there at all.”