Right now Gundlach thinks everything begins and ends with quantitative easing. It creates such a demand for yield that anything with a yield on it is going to continue doing well.
He does not think the Fed is close to stopping and that yield-rich investments will continue to do well.
In reaction to Buffett's comment that bonds are a terrible investment, Gundlach thinks it depends on what time frame you study. He doesn't think that over the next 6 to 12 months treasuries are going to be a terrible investment. Over the next 15 to 20 years, Gundlach says we had better hope that bonds are a bad investment because if they aren't, it means that we have real problems. Video from CNBC: