Gundlach has “No Concept” of the Fed’s Exit Strategy
While the Federal Reserve recently announced the start of a third round of quantitative easing (QE3), several investors have begun to speculate over when and how the U.S. central bank will eventually conclude its unprecedented set of easy monetary policies.
One notable investor who does not see Ben Bernanke and his fellow central bankers departing from their money printing programs for the foreseeable future is Jeffrey Gundlach, the founder of DoubleLine Capital and one of the world’s most respected bond fund managers.
In an interview with CNBC this week, Gundlach stated that he has “no concept of what an exit strategy would look like.”
He added that “In investments, it’s not about trying to figure out what some distant event is going to be, it’s about dealing with the next move on the chessboard. The next move is not the Fed exiting, it’s the Fed continuing [monetary stimulus].”
Following those remarks, Gundlach was asked if he sees the Federal Reserve launching additional rounds of QE – akin to the concept of QE infinity – to which he responded with a resounding yes.
Later in the interview, when asked how he is managing money in light of the Fed’s ultra-dovish stance, he stated that Investors should focus on real assets and real businesses that can preserve purchasing power.”
Although Gundlach did not specifically mention gold, his comments clearly indicate that the yellow metal would be among the asset classes he likes.
2012-09-20 23:35:54
Source: http://www.goldalert.com/2012/09/gundlach-has-no-concept-of-the-feds-exit-strategy/
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