- Billionaire bond investor Jeff Gundlach is not just known for his legendary bond investments.
- The bond king, and founder of DoubleLine Capital, is equally renowned for his blunt views on markets, the Treasury Department, and much more.
- Markets Insider has rounded up 14 of Gundlach's most insightful, interesting quotes, which you can see below.
- Visit Business Insider's homepage for more stories.
Billionaire bond investor Jeff Gundlach is not just known for his legendary bond investments.
The bond king, and founder of DoubleLine Capital is equally renowned for his blunt views on markets, the Treasury Department, and much more.
Gundlach is particularly vocal on Twitter, notably questioning the purpose of taxation in early May after the Treasury announced that it would borrow $3 trillion over the next quarter to help cushion the impact of coronavirus.
But that's not all he's shared his views on. Markets Insider has rounded up some of Gundlach's most insightful quotes on markets, the Treasury, recessions, and of course, bonds.
Check them out below:
On massive government borrowing during the coronavirus pandemic: "If endless borrowing is a viable solution, why did we have any taxation in the first place?"
Source: Twitter
On his distaste for corporate debt: "We have never owned a single corporate bond in the Total Return Strategy dating back to 1993. Look it up," Gundlach said. "When corporate bonds become very overvalued, especially when rates fall due to recession prospects increasing — well?"
Source: Money and Markets
On fundamental changes to the global economy in 2020: "What people in financial media don't seem to understand is that we are never going back to the January 2020 'You blow dry my hair and I'll blow dry your hair' economy. Saving money and having a net economically productive skill will be the new cool."
Source: Markets Insider
On his creative process: "I don't often know where my ideas come from. Maybe it's the fact that I'm obsessively regimented in my analysis, borderline autistic. But whether it's bond selection or asset allocation, we can do it better than just about anybody around."
Source: Barron's
On monetary stimulus: "Quantitative easing is NOT going away. Every major country is running a deficit. If they are all net borrowers then who is the lender? The central banks. For this reason – QE is not going away for a long time."
Source: Business Insider
On risk: "The trick is to take risks and be paid for taking those risks, but to take a diversified basket of risks in a portfolio."
Source: Morningstar
On his strategy: "I've said this a thousand times ... we always run shorter duration."
Source: Reuters
On the idea of Modern Monetary Theory: "Modern Monetary Theory is not a good idea. It's not modern, it's not monetary, and it isn't much of a theory."
Source: CNBC
On Fed chair Jerome Powell: "Every time Powell gets in front of the press-conference microphone, the Dow drops a thousand points."
Source: New York Magazine
On downturns: "When you're in a major market downturn, the beta eats the alpha."
Source: Forbes
On the airline industry in 2020: "Warren Buffet selling all of his airline stocks corroborates the 'economic genie is not going back in the bottle' thesis."
A genie not going back into the bottle refers to the idea that once something has changed fundamentally it cannot change back.
Airlines have traditionally been seen as solid, reliable investments, but the coronavirus could change that forever.
Source: Markets Insider
On politics: "Just look at our politics right now — I think they're pretty messy."
Source: New York Magazine
On government bailouts: "The word 'bailout' needs to be labeled 'hate speech' directed toward every citizen who played by the rules."
Source: Twitter
On recessions: "To say that (rate cuts) are going to stop a recession is flawed, once the Fed is in easing mode, it is already too late. You already have a recession gaining momentum."
Source: Reuters