Bond investor Jeffrey Gundlach, the founder of DoubleLine Capital, told a room full of 3,000 investors that they need to “prepare for a Trump presidency.”
“When I was a kid, people said on the right are the Republicans, on the left are the Democrats. To the left of the Democrats are the liberals, the left of the liberals are the socialists, to the left of the socialists are the communists. To the right are conservatives, to the right of the conservatives are the reactionaries,” Gundlach said at the 21st annual Sohn Investment Conference.
He continued: “People say Donald Trump is not conservative enough, but he’s actually a reactionary,” he said, emphasizing Trump’s “Make America Great Again” slogan is a “reactionary statement.”
Gundlach said said he has a feeling Trump is going to win.
“So I think you need to prepare for a Trump presidency.”
He said that many have argued that Trump doesn’t belong in the “party of Ronald Reagan.” Gundlach then showed a campaign button from Ronald Reagan’s campaign that said “Let’s Make America Great Again.”
According to Gundlach, the US will get “a Reagan response with Trump.” He pointed out that Trump has promised to build a wall, create jobs, and invest in infrastructure.
He then showed a chart comparing debt to GDP.
“Donald Trump is extremely comfortable with debt,” Gundlach said, pointing that in debt to GDP had remained stable going into 1980 and then there was a debt-based economic boom. He added that it’s been “stable for a while” and that he thinks it’s going to go higher.”
During his presentation, Gundlach slammed Jeb Bush, Marco Rubio, and Ted Cruz. He also ripped into Hillary Clinton.
Julia La Roche is a finance reporter at Yahoo Finance.