•   
  •   
  •   

Offbeat Bond giant Gundlach warns: Investors should be absolutely clear about these two risks

08:25  13 july  2020
08:25  13 july  2020 Source:   finanzen.net

Nike has removed all Washington Redskins products from its online store as pressure grows on the NFL side to change its name

  Nike has removed all Washington Redskins products from its online store as pressure grows on the NFL side to change its name Nike was one of three companies recently sent letters by investors asking them to sever ties with the Redskins until it changed its name.Nike was one of three companies recently sent letters by investors asking them to sever ties with the team until it changed its name, which is classified as a racial slur against Native Americans.

Billionaire bond investor Jeffrey Gundlach believes that even though recession risks have fallen, now is the time for investors to be "playing defense." The U.S. economy has weathered the uncertainty of a full-fledged trade war between the world’s two largest economies far better than most economists

Bond king Jeffrey Gundlach warns that ballooning debt levels could be a source of problems for the markets and the economy should a recession hit. “The biggest risk – and it may not materialize for a little while longer — when the next recession comes, there's going to be a lot of turmoil because the

The central banks are trying to mitigate the economic consequences of the corona pandemic by making huge changes to the money market. This has consequences that investors do not pay enough attention to, warns bond expert Jeffrey Gundlach.

• Exchanges seem to hide corona risks

• Jeffrey Gundlach warns of the consequences of fiscal policy

• Dollar crash and dependence on the Super 6

The corona crisis no longer seems to cause investors to worry deeply. While infection rates continue to rise in some countries, and particularly the United States is struggling with the spread of the virus, the stock markets have already ticked off the crisis: many markets are on the way to their pre-crisis levels, and US tech values ​​have even reached new highs.

Dow climbs as global stocks rally

  Dow climbs as global stocks rally The Dow and the US stock market are rallying at the start of the new week. Investors seem willing to take risks after the long Independence Day weekend in the United States. © Mark Lennihan/AP Stock gains around the world helped boost US market sentiment Monday. Asian markets rallied sharply, with the Shanghai Composite recording its best day in five years, closing up 5.7%. Loosened financial regulations and hopes for further government support for markets could ring in a new bull market in China. Chinese state media over the weekend said investors were rushing into Chinese stocks.

This resulted in the first professional football team in Russia which after the Revolution became the core of Moscow Dynamo team. The most famous 'Trock' band is 'Chameleon Circuit'. They produce music exclusively about 'Doctor Who', and so far have released two albums.

Billionaire bond investor Jeffrey Gundlach , the CEO of 0 billion DoubleLine Capital, thinks the market will “get something that resembles that At this point, a recession is the consensus, but Gundlach thinks Wall Street might be too optimistic about a quick recovery. He pointed out that the

Responsible for positive investor sentiment are the central banks, which flood the markets with liquidity to mitigate the economic consequences of the pandemic. Bond king Jeffrey Gundlach is concerned that this is not viewed critically enough by investors.

Warning of dollar crash

In an interview with "Yahoo Finance", the founder of the investment company DoubleLine Capital LP warns that investors would hide two elementary risks.

The "fiscal explosion", as Gundlach calls the flood of liquidity on the part of the central banks, will ultimately weaken the US dollar . If the dollar crashes, it could break the financial dominance of the United States, the bond expert fears.

Although this scenario is not imminent, "there is a risk that the dollar will reverse into a significant downward trend as the value of the dollar against other currencies is strongly affected by the growth of our budget and the trade deficit". The US trade deficit has decreased due to the impact of COVID-19 on global growth, but at the same time the budget deficit has exploded for the same reason, Gundlach summarizes the economic situation in the United States.

Huawei urges UK not to rush into 5G decision

  Huawei urges UK not to rush into 5G decision Chinese telecoms giant Huawei urged Britain on Wednesday not to rush into taking any costly decision to phase out its equipment from the UK's 5G network because of US sanctions. Huawei equipment is already ubiquitous in Britain's older-generation 3G and 4G networks. The Chinese company argues that 5G will become even more important as the world switches to home working because of the new coronavirus.British telecoms companies have warned that stripping out all existing Huawei equipment could cost them billions and take years to implement.It could also undermine Johnson's "full fibre for all" pledge.

Earlier this year, investors grew concerned about the potential for a recession as global manufacturing activity slowed down while business sentiment Gundlach added Wednesday that he does not think an agreement will be reached before the 2020 presidential election. "There's absolutely no reason for

Influential bond investor Jeffrey Gundlach , the CEO of 0 billion DoubleLine Capital, sees trouble brewing in the debt market, despite interest rates hovering near historic lows. He recommended that "corporate bond exposure should be at absolute minimum levels right now.”

The US is worse off than many other economies in which the central banks have also taken extensive fiscal measures. Gundlach believes what the European Central Bank and other monetary authorities have decided is "dwarf" compared to what the Fed has initiated. "We really bear the brunt of the fiscal explosion here."

Dependence on the "Super 6"

Another point besides a possible dollar crash, which investors are currently paying too little attention to, is in his opinion the record rally on the markets. Wall Street's recent outperformance - despite an increase in coronavirus infections - is mainly driven by six tech titles that Gundlach calls "Super 6". Facebook , Amazon , Apple , Alphabet , Netflix and Microsoft had led the recovery in the tech sector in the past weeks and months, and past years were also dominated by FAANG shares and Microsoft shaped. "Without the Super 6, there is no profit growth in the US stock markets. There has been no profit growth in the past five years. If you take them out, there is nothing left," warned the investor. With the Small Caps he sees no profit growth at all.

Chinese report of 'more lethal' pneumonia dismissed

  Chinese report of 'more lethal' pneumonia dismissed A new strain of pneumonia has a "much higher" mortality rate than the one caused by COVID-19 and is spreading in several Kazakh cities, Chinese officials have warned. The central Asian country has ridiculed the report. © AFP/R. Pryanikov Provided by Deutsche Welle The Chinese embassy in Kazakhstan warned its citizens on Thursday of an unidentified strain of pneumonia, after a "significant" rise in cases in June. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

Jeffrey Gundlach is a highly regarded bond investor , and a well-respected CEO and business leader in the investment management world. In less than ten years, Los Angeles-based DoubleLine Capital has gone from zero to 0 billion in assets under management.

The lengthy low- risk , low-volatility U.S. financial environment should not be viewed as a "new paradigm," influential bond Gundlach , who runs more than 5 billion at Los Angeles-based DoubleLine Capital, said investors should rotate out of U.S. stocks and into European equities, and

In fact, he estimates the gains on the stock markets at a level of 2016, when the stock prices were still around a third lower. "The manipulation of the market has completely lost the fundamental data," he added.

Private investors in sight

Gundlach also considers the increasing activity in the private investor sector to be dangerous. "The stock market has increased in part because the government has given money to unemployed people." He speculated that part of this stimulus money would go to the stock market because there were always new products with which private investors could buy company shares. In particular, the options market was "unusually active", Gundlach warned in the interview.

He also believes that many people would normally carry their money to the casino or spend it on sports bets, but currently could not, "so just grab a FAANG share flyer instead".

Many of the private investors who buy stocks on the stock exchange "don't even know what they're doing and have probably already lost money," he warned.

Redaktion finanzen.net


Video: Share in focus: Corona doesn't hit Knorr-Bremse as badly as feared (dpa afx)

Jacksonville sheriff warns GOP convention security plan 'not achievable right now' .
Duval County, Fla., Sheriff Mike Williams (R) said Monday that his office is unable to provide security for the Republican National Convention in Jacksonville, citing lack of plans and insufficient funds and manpower."As we're talking today, we are still not close to having some kind of plan that we can work with that makes me comfortable that we're going to keep that event and the community safe," Williams told Politico. "It's not my event to"As we're talking today, we are still not close to having some kind of plan that we can work with that makes me comfortable that we're going to keep that event and the community safe," Williams told Politico.

—   Share news in the SOC. Networks
usr: 10
This is interesting!