Chart of the Day: Home Prices vs. Gold Since 2005; Gundlach's CNBC Interview on Aug 29

When Jeff Gundlach, CIO/CEO of DoubleLine Capital, was on CNBC on 8/29/2013 he mentioned that home prices and gold have been negatively correlated since 2005, which I thought was interesting. In my chart below, you can see that when the S&P Case-Shiller 20-City Home Price Index bottomed out in late 2011/early 2012 and started to rise, gold topped out and eventually broke down. So is the recent strength in gold predicting another fall in home prices? Or, more specifically, did gold make a long or short-term bottom here.

Source: St. Louis Fed


During the interview, Gundlach also mentioned where he thinks the 10-year Treasury note yield will top out, his thoughts on emerging market fixed income, the Fed tapering, agency MBS REITs, and interest rates versus housing and risk assets going forward.




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