Jeffrey Gundlach believes bonds are attractive at the current price.
Jeffrey Gundlach, Double Line, the world’s largest fixed-income investor had a challenging year as his fund is down 10.6% year to date.


“Jeffrey Gundlach, Double Line, the world’s largest fixed-income investor had a challenging year as his fund is down 10.6% year to date”
WEALTH TRAINING COMPANY
This year, 2022, has been the worst year for investors across the risk asset spectrum in more than 40 years. No private investor or money manager below 70 years old has ever navigated such treacherous market conditions as monetary policy transition abruptly from record easing to record tightening in just two years. There were no safe haven assets in 2022, as even the least risky assets, such as US treasuries and precious metals, lost money during 2022.
On the other end of the asset risk spectrum, technology, growth stocks, and cryptocurrencies are all deep in pain and experienced losses akin to the dotcom bust, down 60 to 80 percent from their ATH. This was the year of no haven assets where cash and USD were king, as I forecasted in 2021. Erratic swings in monetary policy created bubble bursts, blowups, and Uninvestable Markets, the title of a piece I wrote back in May.

“technology, growth stocks, and cryptocurrencies are all deep in pain and experienced losses akin to the dotcom bust, down 60 to 80 percent from their ATH”
WEALTH TRAINING COMPANY
The 60-40 portfolio has performed the worst in more than a century, and now Jeffrey Gundlach believes bonds are attractive
Jeffrey Gundlach touts the cheapness of at least some parts of the fixed-income market.
The US Treasury Bond market is rallying tonight. Been a long time. I have been a buyer recently.
— Jeffrey Gundlach (@TruthGundlach) September 27, 2022
“with core inflation above 8%, will negative yields keep investors sweet on treasuries?” – Wealth Training Company
The following day, he tweeted that bonds were cheap but noted momentum to higher yields.
Bonds are cheap. But the momentum to higher yields is relentless.
— Jeffrey Gundlach (@TruthGundlach) September 28, 2022
Bonds are ‘wickedly cheap to stocks,’ Gundlach emphasized.
Jeffrey Gundlach believes bonds are attractive as yields peak.
Then, on October 4, Gundlach tweeted that the yields of both the two-year and 10-year treasuries were considerably off their recent highs to that point. The two-year yield was down to 4.04% from 4.37%, and the 10-year was down to 3.61% from 4.00%.
The highest yield lately on the 2-year Treasury was 4.37. Closed today at 3.7%. The highest yield lately on the 10-year Treasury was 4.00. Closed today at 3.61.
— Jeffrey Gundlach (@TruthGundlach) October 4, 2022
The rise in yields this year has been relentless. The yield on the two-year Treasury ended last year at 0.73%, and the yield on the 10-year Treasury ended 2021 at 1.51%.
The Fed has indicated it will hike again before the end of the year, albeit at a slower pace, pushing the Federal funds rate above 4%.
But with core inflation above 8%, will negative yields keep investors sweet on treasuries?
The saga continues.