DoubleLine Capital's Jeffrey Gundlach, dubbed the "King of Bonds" by Barron's two years ago, seems to have impeccable timing.
Last July, he said US government bonds could be at a peak as yields were at historic lows. Yields have since drifted up to around 2% as prices have declined. In the meantime, Apple, a stock he had described as "over-believed and overbought", has fallen to around $450. He shorted it at $610 last year.
Moreover, earlier this month he said he reckoned that the rally in US stocks had gone too far. Equities are "obviously overbought in the short term". This week's Cyprus-induced wobbles duly followed.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Gundlach now thinks that bonds look good value compared to other, traditionally riskier assets. "I bought more long-term Treasuries in the last month than I've bought in four years. I am a fan of Treasuries now."
He is also a fan of the so-called "Abe Trade". Japan's government seems absolutely determined to debase the currency and is explicitly saying it wants to inflate, he notes. The yen "is going down" to 100 to the greenback, and could reach 200. And the next stop for the Nikkei is 13,000.
Who is the richest person in the world?
The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
By Vaishali Varu Published
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
By Ruth Emery Published