Jeffrey Gundlach, CEO DoubleLine Capital, offers investors to calm down and try to preserve their capital by investing in cash, gold or trezheris while avoiding US stocks - by AMarkets materials.
Allegorically speaking, the expert said that the market growth requires a ladder - to climb it on foot ... And for the fall - the market tend to choose high-speed elevator. And investors are much more important to be on the stairs - quietly and slowly climbing up. The express elevator, rushing down, you can do something silly, especially when the cables are cracking at the seams.
According to Gundlach, the outcome of the referendum in favor of BREXIT highlight strong, we can say, the dominant mood of the people - a passion for change. Gundlach offers to pay attention to stocks that pay high dividends (which, as a rule, communications companies and utilitiz), as well as undervalued developing region against the background of decline of the US stock market, expanding credit spreads and price volatility in relation to Europe's risk assets . Results of the referendum down noticeably pressed through European, Asian stocks, pound, euro, oil. $ 60 mlrdny Bonded fund Gundlach DoubleLine Total Return Bond Fund rose by 2.5% in 2016. On expert I sold all European assets last week, taking advantage of a strong rally the previous week.
Gundlach did not expect that the British will take massive decision to withdraw within the popular vote. Yes, not only Gundlach, other eminent experts also did not believe that the vote will take place in favor of exit from the Union of Great Britain. Apparently, the desire for change was much harder than they thought. This Gundlach says that referenda tend to reflect people's deep frustration, which may not coincide with the real determination to take this or that decision. Nevertheless, the results of a referendum that does not change.