Speaking of “very stable geniuses” who shouldn’t be allowed to have Twitter accounts… Jeff Gundlach.
When last we checked on ol’ Jeff, he was opining on stocks and bonds as he’s prone do from time to time when he’s not busy regaling his social media followers with tales of conspiracies and fake news.
Specifically, Jeff – through careful introspection and consultation with his proprietary models that emanated from his “very good brain” – had come to a truly unique conclusion about 10Y yields and equities. Here’s that conclusion:
My idea that the S&P would go down on the year would become an extraordinarily strong conviction as the 10-year starts to make an accelerated move above 3 percent.
“My idea.” Because no one else had thought of that. It was his idea. Trademark, copyright, Gundlach.
So that was early last month and needless to say, 10Y yields have indeed “made an accelerated move”, only in the exact opposite direction, falling to a two-month low this week as the swoon in equities triggered a safe-haven bid for the long end.
But Jeff isn’t going to say that. Instead what he’s going to do is talk about how “right” he was about everything, which shouldn’t come as a surprise because let’s face it, that’s all Gundlach ever fucking does. He opens his mouth for three purposes and three purposes only: 1) to tell you he was right, 2) to accuse you or someone else of lying about him, 3) to let in sustenance.
In the first absurd clip you’ll watch below, he actually says the following about how stocks reacted when 10Y yields hit 2.63:
And boy was I ever right.
Then, on the way to kind explaining away the fact that the 10Y never actually got to 3%, he literally dares Scott Wapner to “call him a liar” over 5bps.
He did say a couple of things on Wednesday that, while still kind of Gundlach-centric to the extent he claims to have known everything there was to know about the Great Depression when he was in elementary school, are at least worth noting:
I mean it is really interesting when I was in elementary school and high school we talked about the Great Depression … [What] my teachers told me was that the Great Depression was caused by the Federal Reserve raising interest rates prematurely in a not so strong economy and also the Smoot–Hawley Tariff Act. So here we are. We are raising interest rates late in the cycle. Laid on top of that quantitative tightening … on top of that we’re now talking about tariffs, so one can put together a scenario that we’re stumbling our way into a policy mistake.
Those half-right ruminations aside, it is difficult for me to suffer this moron and the only reason I do is because it entertains me to watch people who are obviously some semblance of retarded talk about themselves in the third person on national television.
So without further ado, here’s how “right” Gundlach is, was, and always will be: