Jeff Gundlach Says U.S. Credibility Eroding, Tesla ‘Cultish’

Jeff Gundlach Says U.S. Credibility Eroding, Tesla ‘Cultish’
Jeff Gundlach with permission from Double-line Capital

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.

Play Quizzes 4

Jeff Gundlach Says U.S. Credibility Eroding, Tesla 'Cultish'

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.”

How Value Investors Can Win With Tech And “Fallen” Growth Stocks

Valuation Present ValueMany value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More

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.”

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Corsair Capital Q3 Letter: Bullish Case for News Corp
Next article HSBC To Quit India Retail Broking

No posts to display