Billionaire Investor’s Dire Warning: Sell Everything!
With the S&P 500 hitting record highs, one of the world’s most renowned investors has hit the panic button with a sledgehammer…
Jeffrey Gundlach, also known as the “Bond King,” is one of the most accomplished fund managers on the planet.
Just six years after launching his own firm, DoubleLine Capital, he’s at the top of the bond world, with more than $100 billion under management.
When Gundlach speaks, the press genuflects.
And not surprisingly, many of Wall Street’s brightest lemmings are freaked out by his recent market warnings…
Running for Cover
In a recent Reuters interview, Gundlach told investors to head for the hills.
Here’s his apocalyptic advice:
http://dailyreckoning.com/billionaire-investors-dire-warning-sell-everything/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+dailyreckoning+%28The+Daily+Reckoning%29
Why is Gundlach headed to the bomb shelters?
Economic growth is in the toilet… corporate earnings are accounting games… corporate debt is soaring… and the Fed is out of control in an effort to make everyone a winner.
Did I miss anything?
Here’s the deal: By keeping interest rates at zero for more than seven years, the Fed created no-cost loans for CEOs. But instead of using interest-free money for building and expanding, CEOs used it to buy back stock…
This artificially inflated stock prices. And, of course, it made investors and executives happy with ever-increasing dividends and executive bonuses.
That’s what is propping up our all-time high stock market, not real growth.
But Gundlach sees the rigged game implosion coming soon. And he’s not the only legendary investor hitting the big red panic button…
The man who held the title of “Bond King” before Gundlach, Janus Capital’s Bill Gross, is right there too…
In recent comments, Gross was stone-faced: “I don’t like bonds; I don’t like most stocks; I don’t like private equity.”
So with doom and gloom permeating, is there one investment these investing icons actually like?
“I am not selling [my] gold,” Gundlach told Reuters. He holds gold, and gold miner stocks.
Gross agrees. He points to safe havens like gold and land as the sane options in an insane world.
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