WHEN: Today, Friday, November 11th
WHERE: CNBC's "Fast Money Halftime Report"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with DoubleLine Capital Co-Founder and CEO Jeffrey Gundlach on CNBC's "Fast Money Halftime Report" (M-F, 12PM-1PM ET) today, Friday, November 11th. Following is a link to the story on CNBC.com: http://www.cnbc.com/2016/11/11/bond-guru-jeffrey-gundlach-says-the-the-rate-rise-is-about-80-percent-of-the-way-through.html. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000567456 and http://video.cnbc.com/gallery/?video=3000567459.
All references must be sourced to CNBC.
WAPNER: WELCOME BACK TO "THE HALFTIME REPORT." THE BOND MARKET MIGHT BE CLOSED TODAY, BUT IT'S BEEN AN AMAZING WEEK FOR YIELDS WHICH HAVE SURGED ON THE BACK OF DONALD TRUMP'S VICTORY. OUR NEXT GUEST CALLED MR. TRUMP'S WIN AND THE MOVE IN RATES MONTHS AGO. JEFFREY GUNDLACH IS THE COFOUNDER AND CEO OF DOUBLELINE CAPITAL AND WITH US LIVE FROM LOS ANGELES. IT IS A HALFTIME REPORT EXCLUSIVE. JEFFREY, WELCOME BACK. IT'S NICE TO SEE YOU AGAIN.
GUNDLACH: THANKS, SCOTT. A SHOUT-OUT TO ALL THE VETERANS HERE ON VETERANS DAY. THANKS FOR ALL YOUR SACRIFICES, AND WE ALWAYS LOOK FORWARD TO NOVEMBER 11th HERE AT THE FIRM BECAUSE 11-11, THAT'S TWO DOUBLE LINES.
WAPNER: WELL SAID. VERY WELL PUT. SO YOU THOUGHT TRUMP WOULD WIN. YOU THOUGHT RATES WOULD RISE. DID YOU THINK THEY WOULD RISE IN THE MAGNITUDE IN WHICH THEY HAVE THIS WEEK?
GUNDLACH: WELL, I DON'T KNOW ABOUT IN THE COMPRESSED TIME FRAME, BUT BACK WHEN WE TURN MAXIMUM NEGATIVE ON TREASURIES, WHICH WAS JULY 6th WHEN THE TREASURY WAS AT 132, UNBELIEVEBLY WE GOT IT TO THE DAY AND THE BASIS POINT. WE SAID IN THE WEB CAST JUST A FEW DAYS AFTER THAT IN JULY, THE TEN-YEAR WOULD BE ABOVE TWO BEFORE YEAR END. BY THE WAY, I HAVE ANOTHER WEB CAST ON TUESDAY ON ASSET ALLOCATION FOR FIXED INCOME. PEOPLE CAN REGISTER FOR THAT ON DOUBLELINE.COM. YEAH, WE EXPECT THE TEN-YEAR TO GO ABOVE TWO, AND THE 35 BASIS POINT MOVE SINCE THE ELECTION IS NOT THAT SURPRISING GIVEN THE NARRATIVE THAT'S DEVELOPED ABOUT THE TRUMP VICTORY. I DO THINK THIS RATE RISE IS ABOUT 80% THROUGH. AT LEAST THIS LEG OF IT. I THINK WE HAVE REALLY CRITICAL RESISTANCE ON YIELDS UP AT ABOUT 235 ON TENS, MAYBE 180 ON FIVES. ABOUT 1.1 ON THE TWO-YEAR, AND WE SHOULD GET A TRADEABLE RALLY OFF OF THAT LEVEL. IF WE DON'T, THEN THINGS ARE IN REALLY BIG TROUBLE BECAUSE THE RATE RISE SO FAR IS SUFFICIENT TO START HAVING A LITTLE BIT OF ECONOMIC IMPACT. NOT SO BIG YET, BUT THINK ABOUT HOW INTEREST RATES HAVE BEEN SORT OF AT THAT 2% OR LOWER LEVEL ON THE TEN-YEAR FOR SO VERY LONG. I MEAN, THINK ABOUT THE RESIDENTIAL HOUSING MARKET WHERE SO MANY MORTGAGES HAVE BEEN PRICED OUT AT 3% OVER THE LAST MANY YEARS. WHAT HAPPENS IF MORTGAGE RATES GO UP FURTHER FOR WHAT THEY'VE GONE UP SO FAR. YOU WOULD BE LOOKING AT MONTHLY PAYMENTS TO PROSPECTIVE HOME BUYERS THAT WOULD BE SOMETHING LIKE 20%, 25% HIGHER THAN WHERE THEY WERE AT THE EMBEDDED LOWER YIELD LEVELS, WHICH JUST HAS TO LEAD TO, IF IT HAPPENED, SOME CORRECTION IN PRICING IN THE RESIDENTIAL HOUSING MARKET, AND ALSO FOR YIELDS BREAK UP ABOVE THAT RESISTANCE POINT, YOU'RE GOING TO SEE SOME IMPACT ON SOME OF THE FINANCIAL ENGINEERING AND BUYBACK ACTIVITY I WOULD THINK IN THE EQUITY MARKET. THIS IS GETTING TO BE A CRITICAL LEVEL. I REMEMBER WAY BACK, SCOTT, IN PRE-TAPER TANTRUM, WE TALKED ABOUT THE 235 LEVEL ON THE 10 YEAR AS BEING IMPORTANT. I DON'T KNOW IF YOU REMEMBER THAT. THAT WAS QUITE A WHILE AGO, OVER THREE YEARS. WHEN IT BROKE ABOVE 235 IN MAY OF 2013, YOU BLINKED, AND IT WAS AT 275. I THINK WE HAVE A LITTLE BIT MORE TO GO ON RATES MOVING HIGHER, BUT WE SHOULD, YOU KNOW -- WE SHOULD AND HOPEFULLY WILL GET A TRADEABLE RALLY OFF OF A LEVEL NOT TOO FAR FROM HERE.
WAPNER: WHAT'S A REASONABLE YIELD TO EXPECT BY THE END OF THE YEAR PUTTING THE FED INTO THE CONTEXT AS WELL?
GUNDLACH: I THINK THAT WE WILL SEE YIELDS A LITTLE BIT HIGHER THAN WHERE THEY ARE, BUT I DON'T THINK WE'RE GOING TO GET ABOVE 235 BY THE END OF THIS YEAR. ONE OF THE REASONS I WAS NEGATIVE ON BONDS IN JULY WAS THAT THE INFLATION EXPECTATIONS THAT WERE PRICED INTO THE TIPS MARKET WHEN YOU COMPARE THE PRICE OF TREASURY INFLATION PROTECTED BONDS TO NOMINAL BONDS, THE INFLATION RATE WAS SORT OF INSANELY LOW. THAT WAS PRICED INTO THE MARKETS. I MEAN, CPI IS DRIVEN AT THE HEADLINE LEVEL PARTIALLY AND SIGNIFICANTLY BY MOVEMENTS IN WTI. THE YEAR-OVER-YEAR IS NOT GOING TO BE ZERO OR NEGATIVE ANYMORE. EVEN IF OIL JUST STAYS WHERE IT IS TODAY. I MEAN, OIL BOTTOMED OUT IN JANUARY AT ABOUT $26 A BARREL. LET'S JUST MAKE THE MATH EASY AND SAY THAT COME JANUARY LATE IN JANUARY WTI RALLIES A LITTLE FROM HERE AND MAKES IT TO 52. THAT WOULD BE 100% YEAR-OVER-YEAR INCREASE IN THE PRICE OF OIL, WHICH TO OUR ANALYSIS AT DOUBLELINE WOULD CORRELATE TO A 3% YEAR-OVER-YEAR CPI. NOW, HERE WE WERE IN JULY WITH BREAK EVENS ON TIPS TO NOMINALS AT, LIKE, 1.5%. THERE'S JUST NO WAY THAT YOU'RE GOING TO BE ABLE TO KEEP THOSE INFLATION EXPECTATIONS NAILED DOWN AT 1.5% WHEN YOU ARE LOOKING -- STARING -- WHEN IT'S STARING YOU IN THE FACE THAT YEAR-OVER-YEAR CPI ON THE HEADLINE IS 3%. I THINK THIS IS A REALLY INTERESTING PART -- TIME IN THE MARKETS FOR THINKING ABOUT INFLATION EXPECTATIONS, WHAT'S RATIONALE PRICING. SO IT'S GOING TO BE REALLY KIND OF A FUN TIME MANAGING MONEY OVER THE NEXT SIX MONTHS BECAUSE THE TIMES THERE ARE CHANGING WHERE.
WAPNER: SO IT'S SO INTERESTING FOR SOMEONE WHO SAID THAT AT ONE POINT NOT ALL THAT LONG AGO THAT THE STOCK MARKET WAS WHISTLING PAST THE GRAVEYARD, YOU ALSO SAID RECENTLY THAT IF THE S&P HAD CLOSED BELOW 2130 TWICE THAT IT WAS A NEGATIVE SIGN. NOW THE S&P IS AT 2,163. THE DOW IS KNOCKING ON THE DOOR OF 19,000. ARE YOU MORE OPTIMISTIC NOW ABOUT THE STOCK MARKET, OR IS THAT OPTIMISM TEMPERED BECAUSE OF THIS SWIFT RISE IN YIELDS WHICH COULD EVENTUALLY PUT PRESSURE ON A WHOLE BUNCH OF SECTORS?
GUNDLACH: YEAH. BASICALLY I HAVE A WAIT AND SEE ATTITUDE ABOUT THE STOCK MARKET RIGHT HERE. WHEN WE DID GET THOSE TWO CLOSES WE ENDED UP HAVING NINE DOWN DAYS IN A ROW THAT CULMINATED IN SOMETHING OF A CRASH OVERSEAS WHEN THE NEWS WAS GETTING APPARENT THAT TRUMP WAS GOING TO WIN, AND THAT DID TURN OUT TO BE A BUYING OPPORTUNITY. RIGHT NOW THE MARKET IS IN NO MAN'S LAND. I THINK YOU HAVE SORT OF A 2,200 TYPE OF CEILING IF YOU LOOK AT THE CHARTS, AND YOU HAVE, LIKE, A 2,100 KIND OF A FLOOR, AND NOW WE'RE SORT OF RIGHT IN THE MIDDLE, AND THE WAY I'M THINKING ABOUT THE STOCK MARKET IS LET IT PROVE ITSELF EITHER WAY. IF WE GET A COUPLE OF CLOSES ABOVE 2,200, THEN THE BULLS ARE RIGHT. IF WE GET -- GO BACK DOWN TO CLOSE BACK ABOVE 2,100, THEN PROBABLY SOMETHING IS GOING ON WITH RATES GETTING OUT OF CONTROL, AND SO I JUST THINK IF THE STOCK MARKET IS CHEAP AT 2,163, THEN IT'S ALSO CHEAP AT 2,200, AND I WOULD WAIT UNTIL I PROVE ITSELF UP TO THAT LEVEL IF IT'S REALLY FOR REAL. I DO THINK SECTORS ARE GETTING VERY IMPORTANT IN THE STOCK MARKET. ONE THING ABOUT TRUMP'S WIN THERE'S SOMETHING ABOUT IT. PEOPLE JUST WANT SOMETHING REAL. THEY WANT TO SEE THINGS BEING MADE. THEY WANT TO SEE POLICIES BEING CHANGED. THEY WANT TO SEE SOMETHING REAL. NO MORE OF THIS MAN BEHIND THE CURTAIN STUFF. IT MEANS THAT THE FINANCIAL ENGINEERING STOCKS AND THE MOMENTUM STOCKS. I WOULD SAY AWAY FROM THEM IN A BIG WAY. I THINK IF YOU ARE GOING TO BUY THE STOCK MARKET, YOU WANT TO LOOK AT STUFF THAT'S REAL. I KNOW THAT TRADE LOCATION IS TERRIBLE SO I WOULDN'T DO THIS TODAY. I WAS LISTENING ON EARLIER IN THE PROGRAM TALKING ABOUT THE MASSIVE MOVE IN THINGS LIKE INDUSTRIALS AND FINANCIALS. CLEARLY WE'LL GET A PULLBACK FROM THESE LEVELS, BUT I DO THINK IN A INDUSTRIALS, MATERIALS, AND FINANCIALS ARE THE SECTORS THINGS THAT ARE REAL ARE WHAT YOU WANT TO BE INVESTED IN, AND I AM FEELING VERY STRANGE BECAUSE I'VE BEEN NEGATIVE ON FINANCIALS FOR TEN YEARS. I'VE BEEN NEGATIVE ON TIPS IN THE BOND MARKET FOR TEN YEARS. AS OF TWO MONTHS AGO I TURNED VERY POSITIVE ON BOTH OF THEM. TIPS FOR RELATIVE TO NOMINALS. LIKE IN OUR FLEXIBLE INCOME FUND, WHICH IS AN UNCONSTRAINED TYPE OF BOND FUND, ALL OF OUR TREASURIES IN THAT FUND USED TO BE NOMINAL TREASURIES, AND ALL OF OUR TREASURIES IN THAT FUND TODAY ARE TIPS. OUR CORE FIXED INCOME FUND ALL OF OUR TREASURIES TWO MONTHS AGO WERE NOMINALS. NOW ONE-THIRD OF OUR TREASURIES ARE TIPS, AND THE FINANCIALS I LIKE FOR THE OBVIOUS REASONS, A REAL SIMPLE THESIS. -- I'VE HEARD IT ON CNBC OVER AND OVER AGAIN. I AGREE WITH IT. THE YIELD CURVE HAS BEEN STEEPENING AND POSITIVE FOR FINANCIALS, AND, OF COURSE, THE TRUMP WIN AROUND THE EDGES MEANS LESS PRESSURE ON REGULATION OF BANKS WHICH HAS TO BE A POSITIVE. THE MOVES THIS WEEK ARE VERY BIG, BUT THEY'RE JUSTIFIED, BUT FOR THE LONG-TERM, YOU KNOW, NOT SO MUCH FOR THE SHORT-TERM. THESE MOVES ARE REALLY, REALLY OVERDONE.
WAPNER: SO THEN YOU WOULD BE AN OBVIOUS FADER OF ANY YIELD PLAY, SO-CALLED YIELD PLAY, A UTILITY, A TELECOM, A STAPLE, A REET, IS THAT WHAT I'M HEARING?
GUNDLACH: IT'S INTERESTING YOU MENTION REETS AND UTILITY. WHEN I SPOKE AT THE SOHN HEDGE FUND CONFERENCE BACK ON MAY 4th, MY RECOMMENDATION WAS TO GO LONG REM, WHICH IS THE ETF FOR MORTGAGE REETS AND GO SHORT XLU, WHICH IS THE ETF FOR UTILITIES. THAT TRADE HAS ALREADY WORKED -- I RECOMMENDED IT ON A ONE-TIME LEVERAGE. IT'S ALREADY A 30% WINNER. UTILITIES SINCE THEN ARE DOWN 5%, AND THE REETS ARE UP 10%. THE S&P 500 HAS MASSIVELY OUTPERFORMED THE UTILITIES SINCE THEN. I HAVE JUST -- I AM SUSPICIOUS OF YIELD PLAYS BROADLY BECAUSE OF THE TREMENDOUS CROWDING OF THAT TRADE AT MIDYEAR, ALTHOUGH I'M LESS SUSPICIOUS TODAY. ONE OF THE REASONS THAT I TURNED SO NEGATIVE IN JULY WAS THE INCREDIBLE OFF SIDE POSITIONING IN OUR VIEW IN THE BOND MARKET. INFLATION EXPECTATIONS WERE RIDICULOUSLY LOW, AND SPECULATIVE POSITIONS IN BONDS WERE AN ALL-TIME HIGH. THE SHORT POSITION IN THE TLT WAS AT AN ALL-TIME LOW. I THINK THE MOVE IS 80% OVER ON THIS LEG OF IT, AND THAT CROWDED TRADE IS NOT CROWDED ANYMORE. THE SPECULATIVE POSITIONING LONG ON BONDS IS COMPLETELY GONE. IT'S BEEN SHORT THAT SPECULATION HAS BEEN REMOVED. THE POSITIONING IS A LITTLE BIT BETTER. I DO THINK THAT WHY YIELDS WILL RISE A LITTLE BIT MORE, WE MANAGE A LOT OF MONEY, AND A LOT OF BOND FUNDS HERE AT DOUBLE LINE. WE'VE SEEN A LOT OF INSTITUTIONS AND A LOT OF CONSULTING PLATFORMS DECIDE THAT THEIR ENTHUSIASM FOR BONDS WAS TOO MUCH, AND THEY'VE ALLOCATED MONEY IN THE LAST COUPLE OF WEEKS AND PARTICULARLY THIS WEEK FROM BONDS TO STOCKS. I THINK THAT'S ONE OF THE MAIN REASONS. I SHOULDN'T SAY THE MAIN REASON. IT'S ONE OF THE REASONS WHY STOCKS ARE SO STRONG RIGHT NOW. THERE'S BEEN A POSITIONING AWAY FROM BONDS AND STOCKS, AND I'M TELLING YOU, WE SEE IT AT DOUBLELINE. IN SIZE. I THINK IS THAT FUELLED SOME OF THIS MOVE, BUT IT'S NOT GOING TO GO ON FOREVER, AND I THINK THAT WHEN YOU MOVE YIELDS HIGHER, I THINK THAT POSITIONING IS ILL-ADVISED SO I DO THINK THERE IS A TRADEABLE RALLY COMING.
WAPNER: LET ME SLIP IN A QUICK BREAK, IF I COULD, JEFFREY. WE'LL DO THAT AND COME BACK ON THE OTHER SIDE.
GUNDLACH: SURE.
WAPNER: JEFFREY GUNDLACH IS THE CO-FOUNDER OF DOUBLE LINE IN A HALFTIME EXCLUSIVE. LET'S TALK ABOUT FED IN A COUPLE OF DIFFERENT CONTEXES HERE. NUMBER ONE, DO YOU THINK THE FED WILL DEFINITELY IN FACT GOING DECEMBER AND ALSO NOW IF THE FED BELIEVES IT'S NO LONGER THE ONLY GAME IN TIME, IF THERE WILL BE AN INFRASTRUCTURE SPEND, IF THERE ACTUALLY WILL BE SOME FISCAL STIMULUS, WHETHER YOU THINK THERE COULD BE A RISK THAT RATE INCREASES COULD BE AT A FASTER PACE THAN SOME PEOPLE THINK AS THE FED TRIES TO GET OUT OF THE WAY?
GUNDLACH: FIRST OF ALL, IF THE FED DOESN'T RAISE RATES IN DECEMBER THEY ARE NEVER GOING TO RAISE RATES AGAIN. THE BOND MARKET IS GIVING THEM CARTEBLANCHE TO RAISE RATES WITH RATES GOING UP 80 BASIS POINTS ON THE 10 YEAR SINCE JULY 6 AND THE COMPARISON OF YIELDS ON THE BOND MARKET ON THE SHORT END SUGGESTING THERE IS AN 85% PRFOBABILITY IT IS GOING TO RAISE RATES. SO DECEMBER SEEMS TO ME THAT THE FED ABSOLUTELY SHOULD RAISE RATES IN DECEMBER IF THEY PLAN TO EVER RAISE THEM AGAIN. THIS IDEA WILL THEY ACCELERATE THE RATE INCREASES WITH FISCAL STIMULUS IS AN INTERESTING ONE. FIRST WE HAVE TO SEE IF THE FISCAL STIMULUS ACTUALLY TAKES SHAPE AND IF IT ACTUALLY HAS ANY EFFECT. I MEAN ONE WAY TO DO FISCAL STIMULUS IS TO TAKE PEOPLE WHO ARE ON WELFARE, RECEIVING WELFARE PAYMENTS AND SAY WE JUST WON'T GIVE YOU MONEY FOR BEING ON WELFARE WE'LL TELL YOU TO GO INTO THE BACKYARD, DIG A HOLE, FILL IT IN, GIVE THE SAME AMOUNT OF MONEY BUT CALL THAT A JOB. OBVIOUSLY THAT DOES NOTHING IN TERMS OF MOVING THE ECONOMY. IF YOU GET A FISCAL STIMULUS THAT BUILDS THINGS LIKE WALLS AND AIRPORTS AND BRIDGES AND BRINGS PEOPLE WHO ARE UNDER EMPLOYED OR PART TIME EMPLOYED INTO THE WORKFORCE AND THEY GET MORE MONEY FROM THEIR JOB THEN I THINK YOU DO HAVE FISCAL STIMULUS. BUT I THINK WE'RE WAY AHEAD OF OURSELVES ON THIS. IT'S EASIER SAID THAN DONE AND WE'RE NOT SURE WHAT EXACT FORM IT WILL TAKE. YOU REMEMBER THE SHOVEL READY JOBS THEY HAVEN'T MADE THE SHOVELS AND WHEN THEY MAKE THEM THEY WILL BE MADE IN CHINA BUT THE SHOVEL READY JOBS DIDN'T LEAD TO MUCH ECONOMIC GROWTH. IT'S POSSIBLE IT WILL WORK. WE'LL LET IT TAKE FORM. THIS IS ANOTHER REASON – MY BROAD CONTEXT HERE, SCOTT, IS I THINK THESE MOVES THAT HAPPENED ARE JUSTIFIABLE, THEY WERE PREDICTABLE WE PREDICTED THEM AT DOUBLELINE. I THINK WE'RE MORE NEAR THE END OF THE NEAR TERM OF THE, YOU KNOW, SORT OF KNEE JERK REACTION TO THESE THINGS AND NOW COMES THE HARD WORK OF ACTUALLY TRYING TO SEE HOW IT GETS IMPLEMENTED. COULD THE FED TRY TO BALANCE OFF FISCAL STIMULUS? WELL THAT'S KIND OF COUNTER PRODUCTIVE ISN'T IT. OKAY, FINE. ALL YOU HAD IS THE FED WITH THE GAS PEDAL AND NOW YOU HAVE A LITTLE HELP WITH ANOTHER GAS PEDAL AND IS THE FED GOING TO INSTANTLY TRY TO COUNTERBALANCE THAT BY HITTING THE BRAKE.. WHAT'S POINT TO OF HAVING ONE FOOT ON THE PEDAL AND ONE FOOT ON THE BRAKE. WHY BOTHER. YOU'LL RUIN YOUR BRAKES AND BURN ALL YOUR GAS. WHAT'S THE POINT. THE ARGUMENT THE FED WILL TRY TO OFFSET THE FISCAL STIMULUS IS A BAD ONE. COULD THEY RAISE RATES A COUPLE MORE TIMES? SURE. ONE THING THAT PEOPLE ARE MISSING IS THAT NOMINAL GDP, ONE OF THE REASONS AGAIN WHY WE TURN NEGATIVE ON THE BOND MARKET IS NOMINAL GDP IS AN EXCELLENT PROXY FOR WHERE TEN YEAR TREASURY YIELDS SHOULD BE. AND NOMINAL GDP COULD BE UP AROUND 5% WHEN YOU GET TO MAYBE APRIL OF NEXT YEAR, MAYBE YOU GET 2% REAL GDP WHICH WE SORT OF HAVE GOING ON RIGHT NOW. I KNOW LAST QUARTER WAS 2.9 THANKS TO A HUGE SOYBEAN EXPORT IT'S REALLY 2.0. WE'RE RUNNING AROUND 2.0 REAL GDP SOME PEOPLE MIGHT ARGUE HIGHER THAN THAT THAT'S FINE WITH ME. LET'S TAKE 2.0. YOU THROW MAYBE 3% INFLATION RATE ON THAT. YOU'RE LOOKING AT 5% NOMINAL GDP WHAT IN HEAVEN'S NAME ARE TEN YEAR TREASURY YIELDS DOING AT 1.50 IF WE HAVE THE POTENTIAL FOR 5% OF NOMINAL GDP. WE HAVE A TRADEABLE RALLY COMING TO THE BOND MARKET BUT THERE'S A POTENTIAL FOR ANOTHER LEG UP IN YIELDS WHEN WE GET INTO 2017. I'VE SAID OVER AND OVER AGAIN EVER SINCE JULY 2012 I REALLY THINK HISTORY BOOKS WILL SAY JULY OF 2012 WAS THE ORTHODOX LOW IN BOND YIELD. I KNOW TEN YEAR TREASURY GOT A COUPLE BASIS LOWER IN JULY BUT THEN REJECTED IT. THAT WAS A HORRIBLE CHART FORMATION BACK IN JULY. SO I THINK WE HAVE A TRADEABLE RALLY BUT WE'LL GET ANOTHER UP LEG IN YIELDS WHEN WE GET TO 2017.
WAPNER: BEFORE WE GO, YOUR VIEW ON GOLD AND ALSO IN THE CONTEXT OF WHAT STAN DRUCKENMILLER A BRILLIANT INVESTOR TOLD "SQUAWK BOX" THIS WEEK, THAT HE WAS OUT OF GOLD NOW. AND THAT HE WAS SHORT BUBBLES, IN HIS WORD. SHORT BUNDS, GILDS, ITALIAN BONDS, US BONDS I'M WONDERING HOW THAT SHAPES WITH YOUR VIEW OF HOW TO TRADE THIS TODAY?
GUNDLACH: I'M PRETTY MUCH IN SYNC WITH THAT. I AM CERTAINLY SHORT THE BUBBLE CONCEPT. I THINK THE FANGS ARE A BUBBLE FRANKLY. I THINK THEY ARE ALL BASED UPON THE PAST WHICH CHANGED ON TUESDAY. SO I THINK THINGS THAT ARE REAL MAKES SENSE. GOLD, I DON'T THINK IS A GREAT PLACE TO BE RIGHT NOW. IT SOLD OFF A LOT RECENTLY. I WOULD WAIT FOR A RALLY TO SHORT IT. BUT I'M NOT REALLY LONG TERM AS OPTIMISTIC ON GOLD NOW THAT MR. TRUMP IS TAKING OVER THE WHITE HOUSE.
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 386 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms including: CNBC.com; CNBC PRO, the premium, integrated desktop/mobile service that provides live access to CNBC programming, exclusive video content and global market data and analysis; a suite of CNBC mobile products including the CNBC Apps for iOS, Android and Windows devices; and additional products such as the CNBC App for the Apple Watch and Apple TV.
Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc.
For more information about NBCUniversal, please visit http://www.NBCUniversal.com.