Gundlach: “Sell Everything, Nothing Here Looks Good”
by Tyler Durden
ZeroHedge.com
Jul 29, 2016
Two weeks ago, an already bearish Jeff Gundlach appeared to hit the “glass floor” of negative sentiment, and smash right through it.
On July 13, the new bond king said that there is “big money” to be made on the “short side.” Gundlach added that he has been selectively betting against shares in the Standard & Poor’s 500 index and continues to favor emerging market bonds over high-yield “junk” debt. Gundlach was just as skeptical about bonds, warning that the yield on the 10-year Treasury note at around 1.38% to 1.39% “is a terrible trade location. It is the worst trade location in the history of the 10-year Treasury.”
His caution seemed prophetic: it was followed by the biggest two-day spike in 10Y yields in 5 years. However, just like Gross’ infamous “Bund Spike” last May, the selling in TSYs now appears to be over, and following a series of lousy data reports yields are once again sliding.
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