Gundlach Predicts Continued Bond Rally

Doubleline’s chief executive officer doesn’t envision the yield on the 10-year to surpass 3% this year, says an article in yesterday’s Bloomberg. Jeffrey Gundlach believes a bond rally is likely to continue, with yields dropping to “below 2 ¼ at a minimum on the 10-year, maybe  a little bit lower than 2 and then it moves back up.” [The article notes that these bonds traded at 2.36% yesterday after reaching 2.6% on March 13th, their highest level since July 2014.] Last month, according to Bloomberg, Gundlach “correctly forecasted the start of a short-term rally in fixed income” triggered by the […]

Buffett Puts Market’s Valuation in Context with Earnings Yield vs. 10 Year

In a CNBC interview that aired last month, Warren Buffett shared his thoughts on current market valuations and how he would respond to investors that feel they missed their opportunity to buy into the market. “Well, I would say they don’t know, and I don’t know. And if there’s a game it’s very good to be in for the rest of your life, the idea to stay out of it because you think you know when to enter it– is a terrible mistake.” Buffett believes the U.S. stock market is a good game to be in. In fact, the dominant […]