GUNDLACH: SHORT CHIPOTLE

Business Insider

"Bond God" Jeff Gundlach is hosting a luncheon at the New York Yacht Club today.

As part of the luncheon, Gundlach presents his market views. Josh Brown, author of the popular financial blog The Reformed Broker, is tweeting Gundlach's presentation live.

Gundlach has a lot of interesting things to say today. One thing he recommended was shorting Chipotle. According to Brown, he was saving this idea to be unveiled at the Ira Sohn investment conference, but he couldn't resist mentioning it today.

Below are Brown's tweets re-capping the presentation.

Gundlach: Those predicting a collapse for the bond market are "dead wrong"

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach: Forget Fed Minutes, QE is not stopping anytime soon, talk is just talk. Yellen's down to do this til 2025.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

"There's a better chance Bernanke buys every Treasury bond in existence before he ever sells a single one" -ohhh sh*t.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

The message is that ZIRP and QE are a way of life now, find ways to cope and profit.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

"Japan is important to watch, it's a pace car for stock market peaks, weird policy responses and currency debasement." Lololol

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

"The annual $1 trillion budget deficit is propping up the economy, the only thing abetting this is QE" - hence, it is indispensable.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach: Bond indexing has spoiled investors but now it's over. Treasurys make up the largest index weight and yield the least now.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach: "Emerging market corporate debt is THE best area of investment grade fixed income right now"

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

"I think the Yen will go to 200 vs the dollar over time." Ohmygod

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach agrees with John Hussman that profit margins will be mean reverting shortly. This won't hurt corporate bonds necessarily.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

On housing: NY is not America. "Paying a hundred million for a New York apartment is kind of like a jerk tax" - big laugh line

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

On dividend stocks - you cannot compare them to bonds without risk-adjustment, volatility is night and day.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

'Private equity and hedge funds are NOT "alternative asset classes" - they are equities in drag.'

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Question on preferred stocks - first time I've ever heard Jeff admits he knows nothing about something. He punts.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach on his short AAPL / long nay gas trade: "It was better than you thought it was - never went negative a single day"

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

NEW GUNDLACH SHORT IDEA: CHIPOTLE. "Gourmet Burito is an oxymoron". Was saving it for Ira Sohn but couldn't resist mentioning. $CMG

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach on when does he have too much AUM in Total Return: In 2009 we could have managed a trillion, right now probably not even $75 bil.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Takes a dig at PIMCO but not by name re: shadow financial markets, cant be "total return" and so big that you have counterparty risk.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Gundlach mentions John Paulson and Bill Miller specifically as examples of managers getting too big to succeed.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

Jeff is worried about muni market - believes that tax benefit for ultra high net worth will be stripped away someday.

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

"Please don't tell me the Fed can't create inflation if it tried. I think a check for $1 million to every American would get it done." LOL

— Downtown Josh Brown (@ReformedBroker) April 11, 2013

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