Jeffrey Gundlach, Warren Buffett, Bill Ackman & Carl Icahn all can
agree on one thing...They don't want to own any high yield bonds! The
short high yield strategy has been getting some great press lately, as the
warning signs flash brighter and brighter.
“The
risk is there could be a run on the bond funds, causing further downward price
movement. A lot of investors don’t like Treasurys. They’ve been searching for
yield and throwing caution to the wind,” said Jeffrey Gundlach.
“If I had an easy way, and a non-risk way, of shorting a
whole lot of 20- or 30-year bonds, I’d do it,” Warren Buffett said Monday on
CNBC. “...But I think that bonds are very overvalued, I’ll put it that way.”
“I don’t like fixed income as a category, particularly at
today’s interest rates,” said Bill Ackman in a Bloomberg Television interview this week.
“What’s even more dangerous than the actual stock market is the high-yield market,” said Carl Icahn on this weekend's episode of the show “Wall Street Week". Money keeps pouring into high-yield bond funds, even though that market is “ridiculously high,” Icahn said. “When they start coming down, there is going to be a great run to the exits,” he added.
Gundlach, Buffet,
Ackman & Icahn have joined Bill Gross, Stanley Drunkenmiller, George Soros,
Ray Dalio & Jeremy Grantham in cautioning against overpriced and bubbly
financial markets. The bottom line is easy to see, some of the greatest
investors of all-time are warning everyone...Don't own any high yield
bonds! Tradex is positioned to take advantage of this opportunity. Click on the below link
to watch Jeffrey Gundlach's recent high yield warning. #ShortHY
Richard Travia
Director of Research
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