Jeff Gundlach's S&P, Muni, TNX and Home Price Targets (DLTNX, DBLTX)

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Jeff Gundlach, CEO of DoubleLine Capital LP (adviser to the DoubleLine Funds), was Barron's cover story this week. His DoubleLine Total Return Bond Fund (DLTNX/DBLTX) is up 17.36% since it launched in April 2010, outperforming competitors. He made interesting calls in the Barron's article.

DLTNX - DoubleLine Total Return Bond
Courtesy stockcharts.com
In summary, Gundlach thinks the S&P "will hit 500 in the next couple of years", "expects home prices to fall by another 10% to 15%", and if there are muni defaults "there will be a panic at the margin, and muni bonds from the highest-rated on down will plummet". He's setting up a fund to scoop up distressed municipal bond funds at "40% of NAV". I wonder if Kyle Bass is doing the same. I'm going to check what muni-bond funds and ETFs own.

Regarding Treasuries, Gundlach said, "a renewed slowdown in the economy would drive 10-year bond yields sharply lower, but not below 3%, unless a banking panic similar to last year's euro-zone crisis ensues. Here is a link to Gundlach's January report.

DoubleLine's January 11, 2011 Report (via StoneStreetAdvisors)



DoubleLine Opens the DoubleLine Multi-Asset Growth Fund via Load and No-Load Share Classes (PR Newswire)

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