Jeffrey Gundlach, Fed, bonds: Jeffrey Gundlach is the founder of the Double Line investment firm, and Institutional Investor Magazine has called him the Money Manager of the Year in the past. Tracking the activity of Gundlach and following his ideas and suggestions is important, since he represents a notorious figure in the investment universe. After yesterday when Warren Buffett spoke about Apple and J.C. Penney, today, on CNBC, Gundlach shared his opinion regarding the U.S. credit situation and the Fed’s corresponding policies.
Gundlach said that in his opinion, the situation of the U.S.’s credit and credibility is “eroding in the wrong direction.” He also mentioned that since credit agencies are thinking about downgrading the country, it reflects that there is some skepticism regarding the whole situation.
Concerning the new Fed chair nominee, Janet Yellen, who will replace Ben Bernanke, Gundlach’s position is that it’s not likely Yellen will make any policy changes immediately upon taking the seat.