Bond administrator Billionaire Jeffrey Gundlach says Janet Yellen's legacy as Federal Reserve chairman seems strong because he started raising interest rates and reducing the Fed balance.
"It seems that Janet Yellen is going to end up with a pretty good legacy, "said Gundlach, investment director of DoubleLine Capital, during an Internet broadcast on Tuesday of his Total Return Bond Fund. "Until now, nothing has exploded." So far all good. "
US and global growth, stock markets and other economic indicators are creeping without signs of recession in the next six to 12 months, said Gundlach.
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Yellen's designated successor, Jerome Powell, may face a challenge to get Federal Reserve members to agree on a path for future rate hike prospects, according to Gundlach.
I think Mr. Powell is going to find that achieving consensus among Ph.D. . Economists are not going to be easy, "Gundlach said.
Gundlach's DoubleLine Total Return Bond fund, which invests primarily in mortgages, returned 3.6 percent this year through December 4, exceeding 81 percent of its peers Bloomberg: 3 percent of revenues were averaged over the last five years, better than 90 percent of competitors.
On other issues, Gundlach said:
- Commodity prices seem to have touched fund and could be a good investment because they normally rise before a recession.
- The gap supports the observation between the rates of central banks in the United States and Europe, where the policies of quantitative easing continue. "Or it will be a substantially better performance in Europe than in the United States or it will be that economic theory is exactly zero, "he said.
- Republican corporate tax cuts are coming in a "strange environment," because the economy is already strong.
- Municipal bonds, which have returned almost 5 percent this year, have probably been driven by high-income people from states like California and New York who face tax increases under the tax refurbishment bills. in Congress that eliminates many state and local deductions. "It's not really a tax cut in relation to the buyers of the muni market," he said. "For them, it's really a tax increase."