Jeffrey Gundlach, chief executive, DoubleLine Capital
Polls showing Trump's rival Joe Biden with a commanding lead are “very, very squishy right now because of the highly toxic political environment in which we live”, he told a webcast for investors in DoubleLine’s funds, reports ThinkAdvisor. Many conservatives “have lied about their support for Donald Trump… maybe people aren’t really getting the right read from polls”.
Gundlach – who predicted Trump’s victory in 2016 – was also critical of Biden’s choice of Kamala Harris (pictured) as his vice-presidential candidate on the basis that “she’s a little too charismatic … a little too dominant with her personality”– qualities that might normally be seen as an asset in a politician.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Regardless of who wins, Gundlach isn’t optimistic about US Treasury bonds, largely due to the soaring US budget deficit, which is “getting almost surreal”. He believes that that the gold price “will ultimately go much higher because… the US dollar is going to go much lower” (gold is mostly traded in dollars, so a weak dollar means higher gold prices). However, that’s a longer-term bet; for now, the dollar’s weakness “is probably nearly over” and so gold has reached its short-term high. The stockmarket rally is “getting long in the tooth” and stocks could even retest March’s lows. But investors should still hold some stocks as protection against higher inflation, together with gold and a substantial amount in cash as a hedge against deflation.
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
UnitedHealth shares slump — is the US healthcare industry in trouble?The murder of UnitedHealthcare’s CEO has shone a spotlight on a struggling US healthcare industry with an inauspicious outlook
-
Are US stocks too expensive?US stocks have rallied since Donald Trump's election win, but starting valuations are so high that analysts forecast weak performance over the next decade
-
Trump picks Scott Bessent to lead Treasury – will he succeed?Hedge fund manager Scott Bessent is an odd pick for Donald Trump’s Treasury secretary, but he is seen as the more reasonable and pragmatic of the candidates
-
Rouble hits two-year low against the dollar – what does it mean for Russia's economy?New US sanctions have plunged the rouble to its lowest level since 2022. Why are investors spooked and how will this affect Putin's economy?
-
Has Javier Milei succeeded in transforming Argentina's economy?Javier Milei won an election last year on an “anarcho-capitalist” platform, promising to take a chainsaw to the overbearing and bloated state. How’s it going?
-
Brazil booms – but why do investors remain wary?Brazil is booming, but you wouldn’t think so from looking at the stock market. What's behind the market paranoia?
-
Wall Street enjoys a Trump sugar rush – will it crash?Wall Street investors could be repeating the mistakes they made in Trump's first term, when “Trump trades” enjoyed a short pop and then underperformed
-
Will bond vigilantes come for Donald Trump?Bond vigilantes could make a comeback if Donald Trump follows through on some of his promised policies
