After taking a 3 month sabbatical from public appearances, Jeff Gundlach – who in early January joined the bearish bond chorus, announcing that a bear market would commence once the long-term trendline be broken should the 30Y rise above 2.99%…
… which it briefly did today…
… will hold his second webcast for the month, this time unveiling his playbook for later cycle investing, and focusing on his favorite asset class for the current market, commodities.
Readers can register for the free webcast at this link or by clicking on the image below.
Some highlights: Gundlach expects that at tonight’s SOTU, Trump will take credit for not only the rising stock market but accelerating GDP.
It’s not just the US – it is coordinated global growth, “which creates demand for commodities”
Meanwhile, the dollar is falling sharply, traditionally a tailwind for higher commodity prices.
Gundlach then shows what he again calls the “Chart of the year”, the ratio between stocks and commodities, which has a long way higher to go if and when mean reversion kicks in.
Meanwhile, the Bloomberg commodity index is breaking out.
And an added benefit of being long commodities: they spike as the economy enters a recession.
The summary rationale for investing in commodities:
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