Jeffery Gundlach is the CEO of Doubleline, an asset management firm with $34 billion under management. The firm specializes in credit.
He has been called ‘The King of Bonds’ by Barron’s.
Seth Klarman’s Collective Wisdom: Risk Analysis Is The Key To Investment Success
Please note this article is based on publicly available information, however ValueWalk just received Baupost's 2018 letter moments ago and will have exclusive coverage shortly. Seth Klarman is widely regarded as one of the best value investors the world has ever seen. Over the past few decades, his hedge fund, the Boston-based Baupost, has achieved Read More
Quotes Karl Marx about class struggle.
3:08: Marx says that then begins the epic of social revolution, Gundlach calls that tell risk.
3:09: Dick Cheney stated in 2002 that deficits dont matter. Now we see that debt does matter, in many places.
3:11: Debt has built up in core Europe, Germany is on a sole journey towards low unemployment. There is great tension. It looks like Europe borrowed a whole lot of money and gave it to Germany.
3:12: A summer of unemployed youth and nothing to do could leave to Molotov cocktails.
3:18: Credit is the American nightmare. Gundlach is using a lot of humor with ads from the 1950s.
3:19: A quick million used to be so easy but times have changed (picture of Obama shown).
3:21: The middle class has surprisingly had a tax increase over the past 40 years.
3:22: Debt levels keep climbing as the debt ceiling keeps rising. This started in the 1980s, and job recoveries have since been slower.
Less people are a part of the workforce as the level of debt has gone up.
3:23: The best idea is long natural gas, IBEX, 1 Year Libor, and Short SPX, Nordstroms, Apple Inc (NASDAQ:AAPL).
3:24: Gundlach said his barber was upset that apple went down, and it shows how little stockholders know about the company.
3:25: There are a lot of similarities between Google and Apple in 2008, if you just replace the names they seem identical.
3:26: Spain will probably be a loser, but IBEX seems like a potential long term long
3:27: Interest rates are not going up anytime soon, debt is huge, the Federal Reserve has said so. It makes no sense to raise the cost to service debt. Going long Libor x 10 is a way to play this.
3:28: To protect against an end of the world it is good to buy some food. Gundlach was once asked how you protect your portfolio against a nuclear bomb on California, at some point you just cant.