Here is what Gundlach is calling for in 2013:
- The fiscal cliff wasn't a big deal; the real issue is the fiscal crisis the U.S. is facing.
- The country needs to make spending cuts; the fiscal cliff deal only made tax increases and had no spending cuts.
- There are two competing forces in the bond market. The intervention of the government supports prices while the lack of value discourages investors.
- Investors starved for yield are going to start leveraging credit risk which could create problems down the road but for the short term will support bond prices.
- Despite a recent 23% increase in the Japanese stock market he thinks it could go up another 20% in 2013.
- The fiscal cliff wasn't a big deal; the real issue is the fiscal crisis the U.S. is facing.
- The country needs to make spending cuts; the fiscal cliff deal only made tax increases and had no spending cuts.
- There are two competing forces in the bond market. The intervention of the government supports prices while the lack of value discourages investors.
- Investors starved for yield are going to start leveraging credit risk which could create problems down the road but for the short term will support bond prices.
- Despite a recent 23% increase in the Japanese stock market he thinks it could go up another 20% in 2013.
