Jeffrey Gundlach, one of the world's leading bond fund managers, has reversed his once-bearish stance on government debt, saying he has bought "more long-term Treasuries in the last month" than in the last four years.
Gundlach said he started buying benchmark 10-year U.S. Treasury notes in the last month after yields popped above 2 percent, because he sees value there relative to other asset classes, including stocks, which he said are "overbought."
"I bought more long-term Treasuries in the last month than I've bought in four years. I am a fan of Treasuries now. I wasn't a fan of Treasuries in July," said Gundlach, chief investment officer and chief executive officer of DoubleLine Capital.
His Los Angeles firm manages $56 billion in assets.
Gundlach's views are a change in tune from July, when he correctly predicted that government bonds could be at a peak in price. Ten-year notes were then yielding 1.48 percent, within striking distance of the 1.44 percent level touched in the previous month, the lowest going back to the early 1800s, based on data gathered by Reuters....MORE
The Modest Mr. Gundlach:
"Look, I have a gift, or some would say a curse, of being able to have stunning insight into the reality of markets and the economy"...
-from the 2011 Barron's cover story that anointed him The King of Bonds.
The ego may be warranted, he has not had a losing year since at least 2002.
