04/24/2016 - Jeff Gundlach: “Negative Interest Rates Are The Dumbest Idea Ever”
In an interview on Swiss Finanz und Wirthschaft, fund manager Jeff Gundlach unleashes his frustration on central banks .. “What you see is that the same pattern has been in place since 2012: Hope for growth in the new year that ends up being revised downwards, over and over and over again. But now we have reached the point at which no one bothers anymore about the comedy of predicting 3% real GDP growth. Even nominal GDP growth isn’t probably going to be at 3% this year. Actually, nominal GDP is at a level that has historically been a recessionary level. It isn’t this time because the inflation rate is close to zero. But no one bothers anymore and the Federal Reserve has basically given up.” .. Gundlach thinks the U.S. stock market is overvalued versus other stock markets .. Gundlach likes gold – “Gold is doing fine. It’s preserving capital in the U.S., it’s been making money over the last couple of years for European investors. That’s why I own gold. Because in a negative return environment anything that holds its value or makes a little is good.”
