Jeffrey Gundlach: Prepare For A Trump Presidency

[JamesL]

Jeffrey Gundlach, chief investment officer of DoubleLine Capital, told attendees at the Sohn Investment Conference to prepare for a Donald Trump presidency.

“What’s going to happen is you’re going to get a Reagan response with Donald Trump," Gundlach told the New York crowd. “He promises a wall, he promises to bring jobs back, and he promises a lot of infrastructure spending. Let’s face it: Trump is extremely comfortable with debt."

Trump became the presumptive Republican nominee on Tuesday when Senator Ted Cruz dropped out of the race. The money manager predicted that if Trump wins the White House, the ratio of public debt to gross domestic product will rise.

Gundlach’s $59 billion DoubleLine Total Return Bond Fund has returned about 2 percent in 2016, compared with a 3.5 percent gain by the Barclays U.S. Aggregate Bond Index, the main benchmark for the broader bond market. The fund beat 98 percent of peers over the past five years, according to data compiled by Bloomberg.

Gundlach also recommended shorting utilities stocks and buying mortgage real-estate investment trusts, both through exchange-traded funds. With one turn of leverage, the trade should rise by 35 percent, he said.

Last month Gundlach told investors that it would be a good time to buy mortgage-backed securities and sell corporate bonds because the latter could be affected by elevated risk of defaults in high-yield debt. Junk has rallied with Treasury bonds because Federal Reserve Chair Janet Yellen seems to have scaled back expectations for multiple interest rate hikes this year.

http://www.bloomberg.com/news/artic...says-prepare-for-debt-fueled-trump-presidency

Is Krugman an economic advisor to Trump?

 

[futurecurrents]

Who?


Yes, It’s Early, but Donald Trump Would Have Uphill Battle Against Hillary Clinton


http://www.nytimes.com/2016/05/04/u...ick&contentCollection=Politics&pgtype=article


Cliffs: There is no fukkin way that douchebag Trump can win.

 

[Ricter]

I'm preparing to read the apologies for soaring deficits and ballooning debt which will occur if Drumpf's economic plan, in his own words, is actually enacted. That is, his plan to leave entitlements untouched, but cut spending on the discretionary side (except for the wall, and the mass roundup, but leaving the military untouched), while cutting taxes across the board, and still balance the budget. Yessiree.

 

[jem]

all of sudden leftists care about govt spending and the deficit.
lets worry about spending when we actually find out how much money the FED is printing.

 

[ETcallhome]

I'm preparing to read the apologies for soaring deficits and ballooning debt which will occur if Drumpf's economic plan, in his own words, is actually enacted. That is, his plan to leave entitlements untouched, but cut spending on the discretionary side (except for the wall, and the mass roundup, but leaving the military untouched), while cutting taxes across the board, and still balance the budget. Yessiree.

What would Keynes do?

 

[ipatent]

I'm preparing to read the apologies for soaring deficits and ballooning debt which will occur if Drumpf's economic plan, in his own words, is actually enacted. That is, his plan to leave entitlements untouched, but cut spending on the discretionary side (except for the wall, and the mass roundup, but leaving the military untouched), while cutting taxes across the board, and still balance the budget. Yessiree.

The "Mexico wall" is probably really a signal that China and Japan are going to have to forgive some debt if they want to keep their factories busy.

 

[Ricter]

all of sudden leftists care about govt spending and the deficit.
lets worry about spending when we actually find out how much money the FED is printing.

All of a sudden rightists don't care about the deficit and debt. Somehow, either Drumpf isn't serious, or the magic asterisk will kick in.

 

[jem]

1. your premise is a joke at the moment who knows what Trumps economy and spending will be like.

2. and I have been on the idea that until we know what the FED is doing how do we know if the what the govt spends and borrows is inflationary kick for a while now... Probably since all the silly warnings about what would happen if the debt ceiling were not lifted. I learned then Fed would just print more money and honor the debt because the FED is the group that tells the treasury to print the money. They are private Federal Reserve notes.

 

[Spike Trader]

I'm preparing to read the apologies for soaring deficits and ballooning debt which will occur if Drumpf's economic plan, in his own words, is actually enacted. That is, his plan to leave entitlements untouched, but cut spending on the discretionary side (except for the wall, and the mass roundup, but leaving the military untouched), while cutting taxes across the board, and still balance the budget. Yessiree.

You can also forget about ''smaller government''.

 

[Ricter]

your premise is a joke at the moment who knows what Trumps economy and spending will be like.

Just going by what he's saying. He's either lying, or he's going to be trouble. You're in full hope and change mode, it doesn't matter what Drumpf says. He's going to "do it all". Spending? No problem, he's going to audit the FED. Yeah, you bet.

We're supposed to give Drumpf a chance when everything Obama tried to do has been opposed, for the reasons that Drumpf is now getting a pass on.