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Essentially you have a guy who will run a fiscal stimulus fest for 4 years with a mandate to help corporate america and its profitability. To me, it just doesnt make sense to skeptical of US stocks. Sure, there could be long-term problems (from the higher dificits) but -The problem might never...

Will a further rise in risk free interest rates break the US stock market? It all comes down to why rates are up, to me the most important question right now for US assets is how much will the Trump policies generate in terms of the inflation/growth mix. Truth is, no one knows the answer. At...

I dont think there is anyone that would give a damn about how the bond manager cut back his duration, whether in the long or intermediate end. As a long as the manager avoided the train wreck, he deserves props and the client will be happy

Whether the investor/bond manager decreased duration by selling long-term bonds or by selling even more intermediate-term bonds is of so little relevance compared to the DECISION of cutting back duration. By a factor a many times, especially in times like now. Its just nitpicking to raise that...

No its irrelevant nitpicking nonsense. Gundlach was right about keeping his duration low, it enabled him to avoid losses and withdraws. Trying to argue that it wasnt is just nonsense

clients that are losing money wont find any comfort in this sort of stuff

Hasnt the long dated paper % drops been much bigger? sure, in terms of bps it might have been different but in terms of % declines it has been pretty bad, thats the very definition of duration, no?

what do you mean?

Gundlach avoiding duration like a plague in his flexible fund

http://www.zerohedge.com/news/2016-11-15/ray-dalio-what-donald-trumps-presidency-will-look Dalio on Trumponomics

http://seekingalpha.com/news/3224447-buffett-buys-airlines?uprof=44#email_link Buffett buying airlines? Dont think so, probably one of his 2 proteges

He is betting that Italian spread will widen but says he is still has positive carry on the trade. So he is probably long some of the other spreads, maybe Belgium or something

http://www.reuters.com/article/us-investment-summit-hendry-idUSKBN1391JI?utm_campaign=trueAnthem:+Trending+Content&utm_content=5829d9a804d301578bd2d3e4&utm_medium=trueAnthem&utm_source=twitter Hendry said there were three legs to the trade, although he was only prepared to talk about one of...

Also rolled over my short in BRKB puts, now I'm short the Mar 2017 puts

Buying PSH at a 15-20% discount to NAV (as it is priced right now) with a HLF hedge, to me is a very good deal. I get big upside on VRX and with very little downside. If Ackman were to die tomorrow, its quite likely I would make the bulk of that discount in gains as they would slowly liquidate...

Due my bullish US market outlook, I added to my PSH position (about 2%). I'm looking to hedge the HLF short by buying the stock. PSH HLF short is ~10% of assets. I'm looking to knock that down to ~2.5%. That way I'm very much protected against a squeeze (and Icahn seems committed to create one)...

If stocks were to tank because of a collapse in profit margins, that would be a pretty bad thing since expected returns would not rise much. A decline based on higher real rates is much more beneficial to an investor

But that goes back to the point I made before, if stocks tank because real rates are rising, is that bad thing? The expected returns going forward for both stocks and bonds will be quite a bit higher, that's a great thing in terms of future wealth compounding

That said, there are some counterpoints to my thesis Gundlach raises some of them http://www.barrons.com/articles/gundlach-bond-yields-could-hit-6-in-five-years-1478929496 Gundlach says he hasn’t formulated an opinion yet on what’s next for the stock market, partly because of the difficulty of...

So this Trump rally looks big but all SPY did was to go from 210-211 to 216 (not counting that crazy overnight session because that was outside regular trading hours, where the volume come in). We are talking a 2-3% rally, its really not that much. As the trade/appointment uncertanties are...