Jeff Gundlach, chief executive officer of DoubleLine Capital, said the credibility of the United States is “slowly eroding” when asked about his opinion regarding the situation in Washington over the past three months, during an interview with CNBC on Thursday.
Jeff Gundlach said, “I think it kind of slowly keeps eroding in the wrong direction. It feels like we’re in that movie Ground Hog Day. The last five months have just been a weird ride, and it looks like it’s coming up again in just a few more months.”
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Jeff Gundlach on the Dollar index
He added that the dollar index is pushed to a new low with some momentum and there is an existing skepticism among foreign observers, given the fact that credit rating agencies talking about downgrading the credit rating of the United States.
With regard to the bond-buying program or quantitative easing of the Federal Reserve, Jeff Gundlach believed that it will remain at its current level until at least the first quarter next year because, according to him, the government’s fiscal policy is still uncertain.
Jeff Gundlach on Janet Yellen’s nomination
Gundlach explained that Janet Yellen received the nomination of President Barack Obama to replace Federal Reserve Chairman Ben Bernanke supports government intervention to stimulate the markets.
When asked about specific stocks, Gundlach stated that he likes Apple Inc. (NASDAQ:AAPL) as an addition to his portfolio. He said, “I like Apple okay, I think it’s fairly safe to own.” On the other hand, he doesn’t like Google Inc (NASDAQ:GOOG) because he doesn’t perceive growth for the company. According to him, the search engine giant’s $300 billion market cap “should be harvested in terms of capital gains.”
Jeff Gundlach’s views on Tesla
Jeff Gundlach had an interesting view towards Tesla Motors Inc (NASDAQ:TSLA), and described the stock as being “fascinating” with a “cultish aspect” to it. He is fascinated because the stock price of the company is going up while General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) are also experiencing local highs.
According to him, “There is something wrong with the picture.” He believed a certain company should win the market share in the auto industry. He said there has to be a winner and a loser. Not everyone can win.
Jeff Gundlach said, “If Tesla’s really going to be this multiple tens of billions of company it’s going to come from somebody… It [the stock] is not something I would own.”