Gundlach thinks that investors have to watch what the Fed is doing, although we can assume extremely low interest rates will be with us for at least another two or more years.
A fascinating observation by Gundlach in the interview was that in 1984, 30-year Treasuries yielded 14% with the CPI at 4% and falling. Can you imagine having the opportunity to lock in a 10% real rate of return? These days investors are happy to receive a negative real return for a guarantee of invested capital being returned.
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