Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital, speaks at the Sohn Investment Conference in New YorkThomson Reuters
By Jennifer Ablan
NEW YORK (Reuters) – Jeffrey Gundlach, the chief executive officer at DoubleLine Capital, said Tuesday that investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks.
“Central banks are losing control and they don’t know what to do … just like the Republican establishment and Donald Trump,” Gundlach told Reuters in a telephone interview.
Safe-haven German Bund yields fell below zero on Tuesday for the first time and global equity markets slid for a fourth day in a row on intensifying worries about a potential British exit from the European Union next week.
Gundlach’s remarks come the day before Federal Reserve officials are widely expected to leave short-term interest rates unchanged following a dismal May jobs report. Gundlach is set to hold an investor call at 4:15 p.m. EST.
“The Fed is confused and their confusion spills into investor psychology,” said Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine.
“The Fed changes its tone so frequently, it seems every other week the message is different. They’ve turned into the ‘Zombie Fed.’ They say the meeting this week is ‘live,’ but investors all know it isn’t at all.”
Gundlach said it is a “dangerous price appreciation game” to purchase German Bunds at current levels and that gold and gold miners are still an attractive place to put money to work.
(Reporting By Jennifer Ablan; Editing by Nick Zieminski)
Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.
More from Reuters:
- U.S. Third Fleet expands East Asia role as tensions rise with China
- Electric car startups fueled by Chinese money aim to catch Tesla
- More than half online users get news from Facebook, YouTube and Twitter: study
- Second study this week links whole grains with long life
- Obama to meet the Dalai Lama at White House on Wednesday
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
