Investing like Sheep

Published on
May 1st, 2019
Topic
Financial System, Sentiment, Wealth Management
Duration
6 minutes

Investing like Sheep

Future Fears ·
Featuring Jeff Gundlach

Published on: May 1st, 2019 • Duration: 6 minutes • Topic: Financial System, Sentiment, Wealth Management

Jeff Gundlach, founder and CEO of DoubleLine Capital, explains how the lack of original thought and analysis is causing polarization, leading to uncertainty around the world. This video is excerpted from a piece published on Real Vision on March 8, 2019.

Comments

Transcript

  • KJ
    Kelly J.
    9 May 2019 @ 01:25
    Yeah, well, Gundlach is actually way behind the times. ;-) He went out on a limb and predicted a year or two ago that rates had bottomed on a secular basis and were trending up on the long term. My bets leaned toward Lacy Hunt's view that they were still headed down toward Japanification (a ZIRP liquidity trap) in the US, and the recent rise the Fed tried since 2015 is a blip that will disappear back towards zero interest rates again and not reappear for years. Now, Gundlach's finally starting to acknowledge that Japanification may happen 'if the Fed makes the mistake of emulating the ECB and JGB'. Does it sound like the Fed or any central bank to prioritize 'not making a financial mistake' over doing whatever it takes to keep its economy from cratering by whatever means necessary when the threat of a collapse is imminent, as it was in 2008 or the EU more recently? He also calls MMT 'a crackpot idea'. Hasn't thinking we can solve a debt problem with more debt always been 'a crackpot idea' a child could have recognized that they've nonetheless milked for decades? I think Ray Dalio is much more likely on the money than Gundlach with his prediction that QE is going to fail to stimulate the economy enough going forward and there will be no way to avoid a fatal tanking in economies bad enough to generate social unrest without MMT, (monetization of government debt to fund public spending). Dalio thinks governments and central banks absolutely will be forced to undertake it - IMO, whether it turns out ultimately to be just another crackpot idea or not. Dalio's recent article: https://www.linkedin.com/pulse/its-time-look-more-carefully-monetary-policy-3-mp3-modern-ray-dalio/
  • OC
    OTTO C.
    4 May 2019 @ 17:49
    I enjoyed original interview. I don't understand why Real Vision keeps republishing excerpts of old videos, which comes across as content fillers due to lack of sufficient new content.
  • ET
    Ed T.
    1 May 2019 @ 19:05
    I think your point is spot on Christopher. I agree that it is impossible to borrow your way to prosperity for anyone in the long run. So where was the hue and cry when a $61 billion dollar increase in the Defense Budget was passed last year to the point that the defense budget is now 40% GREATER than it was at the height of the Iraq war? It wasn't even discussed. But somehow when the little people try and figure out a way to get some share of this largess, pundits fall all over themselves about how stupid it is. It is inconsistent.
    • CH
      Chris H.
      3 May 2019 @ 04:35
      Who's Christopher? The interview was Grant Williams and Jeff Gundlach.
    • CH
      Chris H.
      3 May 2019 @ 04:36
      I just read the next comment...from Christopher... Haha
  • CM
    Christopher M.
    1 May 2019 @ 15:51
    In my view we are already doing a form of MMT. Congress spends up to the debt ceiling and then raises the ceiling forcing the Fed to issue more bonds. The old restriction was that the bond vigilantes would reduce buying forcing rates up which would put pressure on the gov to keep the budget deficit within certain parameters. Now if that happens the Fed will come in and force rates back down. So where is the restraint on spending? So in effect we have MMT for the financial markets. Why are people surprised when the rest of the country wants to get in on the game.
    • RH
      Ryan H.
      8 May 2019 @ 23:59
      People also miss the aspect pf MMT-ists which is to stop spending Trillions of dollars in needless wars. THAT is where most of the money will come from - by NOT feeding the military-industrial complex. There's plenty of money if we stop feeding the war machine.
  • MH
    Michael H.
    1 May 2019 @ 15:03
    Love Love Love it! Please sign Mr. Gundlach up to a multi year mega contract. He could give a master class in Thinking