Jeff Gundlach just wrapped up another conference call and he made some good (and bad) insights. Here are the key takeaways:
- He says Greece is likely to leave the Euro as the situation continues to spiral out of control.
- Spanish equities are a decent risk-on asset if you have to choose something in Europe. But he’s not sure if you’ll make money….
- He seems to be joining the Kyle Bass team with regards to Japan’s debt situation….
- Germany is near a recession.
- The long natural gas, short Apple trade has performed well so far….
- QE3 is more likely after recent economic data.
- Keep an eye on the week of June 18th where we have a big Fed meeting, another European leader’s conference and implementation of the Volcker Rule.
- The Fed won’t raise rates unless CPI gets very high. He says those who think we’re reliving the 70’s are wrong. “It’s not gonna happen”.
- He says housing in the USA has not bottomed even though it’s becoming fashionable to call the bottom now. Housing will “bumble along”.
- There’s not a great deal of downside in 10 year yields….
- Gold is a reasonable thing to own here….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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