Jeff Gundlach's Presentation at Invest For Kids Chicago ~ market folly

Wednesday, October 30, 2013

Jeff Gundlach's Presentation at Invest For Kids Chicago

Next up in our notes from Invest For Kids Chicago 2013 is Jeff Gundlach of DoubleLine Capital.


Jeff Gundlach's Presentation at Invest For Kids Chicago 2013

•    QE with its monumental scale and scope tries to
•    FDR is a parallel to Obama.  Government – federal, state, and local – costs too much…  New Deal
•    FDR inauguration in a banking panic
•    FDR blamed bankers immediately
•    FDR sent congress a record numbers of bills
•    FDR “try something” & the new slogan is “whatever it takes”
•    Record corporate profits – will they catch the attention of the tax man?
•    FDR raised the marginal tax rate to 100% (500,000 equivalent in today’s dollars)
•    Dynamite shack – sounds like quantitative easing
o    For now the dynamite keeps getting stuffed into the plastic shack
•    Synonym for early is wrong
•    Interest rates are low but don’t have to rise in the near term
•    FDR confiscated gold and the Fed now explains things are “the policy”
•    Speculation at the expense of savers
•    US margin debt is borrowing at the purpose of speculation – mirrors S&P 500
•    Currently alarmingly high
•    Lunch atop a skyscraper
•    Amazon with no earnings, Netflix, Tesla
•    Advice: do not get sucked in to QE and remember ocean of liquidity and risk manage accordingly 


Check out the rest of the hedge fund presentations from Invest For Kids Chicago here.


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