Ok, well someone has apparently talked Jeff Gundlach off the ledge after it looked like he might have blown a gasket last week.
You’ll recall that “The Bond King” was aghast at the prospect that reporters had been fed a line of bullshit by “tricksters” from rival fund managers who he claimed were “bribing” the media in an effort to spread “fake” Gundlach news.
That series of absurd allegations was delivered via Jeff’s @TruthGundlach Twitter feed, a channel that has become his weapon of choice in an ongoing with all things “fake.”
Fast forward to Tuesday, and Jeff took a few minutes away from dispelling falsehoods and battling “crass hucksters” selling bogus Bordeaux to share his thoughts on markets with Bloomberg, who notes that “Gundlach says he can’t predict what event or development will trigger a change in investor sentiment.”
And although he can’t predict the catalyst, he can (and will) predict the outcome. To wit from a phone (i.e. not a hologram) interview:
If you’re waiting for the catalyst to show itself, you’re going to be selling at a lower price. This is not the time period where you say, ‘I can buy anything and not worry about the risk of it.’ The time to do that was 18 months ago.
Jeff also explained to Bloomberg that he’s having to beat back investors with his “truth” stick because “he believes there’s a limit to how much DoubleLine can manage well and says the firm may stop marketing altogether once assets reach $150 billion, up from about $110 billion today.” Here’s Jeff:
I’ve actually been turning money away in our institutional business. I don’t want to manage $500 billion. I don’t really want to manage $200 billion.
I see. Compare that to this tweet from last week:
Here’s Jeff again from this week:
I don’t want one $150 billion fund, I want 10 $15 billion funds. A diversified business. We lose business because our fees are too high and I say, ‘Fine, that’s a way of regulating growth.’
And here’s another tweet from last week:
I’m sorry, but this has a bit of “Trump-ish” feel to it, wouldn’t you say?
Whatever. Here are two more takeaways from the Bloomberg piece:
Volatility is about to go up. That’s my highest-conviction trade right now.
I don’t see the big drop, unless there’s something out of left field, like some sort of really escalating conflict. I think you’re supposed to be gradualistically moving toward the exits.
Stay tuned to Jeff”s Twitter feed because that’s where the real magic happens and remember: “there’s a big difference” between not wanting any more money and people not wanting to give it to you….