Jeffrey Gundlach has said that he wants to buy things when other people are afraid of them, according to Bloomberg:
"I want fear. …I want to buy things when people are afraid of it, not when they think that it’s a gift being handed to them."
He made the comment in reference to speculative bonds, i.e. bonds with a rating lower than BBB by S&P or Baa by Moody's.
Gundlach is said to prefer cash to all other investments. 10-year treasuries would offer a buying opportunity if yields rose above 3.5%, he said.
Gundlach's DoubleLine Capital LP is opting for cash. Some of DoubleLine's funds which don't typically hold cash are opting for 15% now, and its Multi-Asset Growth fund holds 30%.
Mutual funds have been increasing the percentage of their assets that they hold in cash to the highest level since 2008. Managers are said to be holding about $243 billion of cash and short-term securities. In a previous interview with Bloomberg, Gundlach had said:
“We are looking for a more severe down move in prices, for a better level to buy. …To hold cash you have to have a conviction that prices of something that you’d otherwise own will go down, which is exactly what happened in June.”
Please follow Money Game on Twitter and Facebook.
Join the conversation about this story »
See Also:
- CHART OF THE DAY: Here's Why Old People Hurt The Stock Market
- U.S. Futures Gain Ahead Of Open
- Sorry, Folks, All Those 400-Point Stock Market Crashes Don't Mean We're Near The Bottom
Source: http://feedproxy.google.com/~r/TheMoneyGame/~3/hBNlU8_3F5U/gundlach-opting-for-cash-2011-8
Guide To Financial Fitness Money Game Tech Crunch Personal Finance News & Advice
No comments:
Post a Comment