It is certainly no secret that billionaire money manager Jeffrey Gundlach has been warning his clients that stock market valuations are exceedingly high, but now he sounding a lot like former Fed. Chair Alan Greenspan and yes myself, with regard to the bond market.
Moreover, Mr. Gundlach is putting his money where his mouth is. The billionaire money manager made a public announcement on CNBC that he was buying puts against the S&P 500 at the end of July.
Yesterday Mr. Gundlach stated that he expects to see bond market bulls get walloped as treasury yields break out to the upside.
Just two weeks ago we heard from none other than former Fed. Chair Alan Greenspan who is also warning that the bond market was "in a bubble."
Jeffrey Gundlach
Alan Greenspan
Me
If in fact Mr. Gundlach, Mr. Greenspan, and myself are correct, (keep in mind that I have been for warning people about trouble in the bond market for the better part of a decade), the effect on the stock market should not be underestimated.
In a rapidly rising rate environment the stock market would take a serious hit, hence Mr. Gundlachs puts against the S&P 500, which would pay off big time. Can you say Big-Short?
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