Jeffrey Gundlach: The yen is going down
The so-called 'King of Bonds', Jeffrey Gundlach, has declared himself a fan of the 'Abe Trade'.
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
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Skipton launches a retirement bond with monthly income – is it any good?
The building society has launched a new three-year fixed-rate bond for those aged 66 and over. Can it boost your retirement income?
By Katie Williams Published
-
Pensions: 140,000 pensioners to be hit by surprise tax demand
Tens of thousands of pensioners will be written to over the summer because their pensions have gone above the frozen income tax thresholds
By Chris Newlands Published