WHEN: Today, Wednesday, March 15th
WHERE: CNBC's "Fast Money Halftime Report"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with DoubleLine Capital Founder and CEO Jeffrey Gundlach on "Fast Money Halftime Report" (M-F, 12PM-1PM ET) today, Wendesday, March 15th. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000601579, http://video.cnbc.com/gallery/?video=3000601586 and http://video.cnbc.com/gallery/?video=3000601585.
All reference must be sourced to CNBC.
Gundlach on the bond rally
As the Fed decision looms, what's going on with the long end of the Treasury market is it's actually rallying. Its back below 260. It popped up above 260 on a close that didn't cause a waterfall effect that some people said it would. In fact we're below 260. And I think the bond market is set up for a rally coming up here in the weeks ahead.
Gundlach on the stock market
I still think you're in the go-with mode for this. The problem for the stock market will be when we get the next leg up in interest rates. Everybody is looking for three percent on the ten year, I believe that's going to happen this year but first a rally. So it's really the pressure will come when interest rates are perceived to be rising again and creating some competition for the stock market.
Gundlach on diversifying globally
I think investors should use the relative outperformance of the S&P 500 and other indices of the United States to diversify into more global investing. This is a good time for investors to peel off a piece of their S and P 500. I think we talked about this in November and to take this strength and use the diversification when the valuation is on your side as opposed to falling victim to that trap and buying something after its up a lot.
Gundlach on the dollar
A dollar being sideways which is my view - I'm not a bear on the dollar. But I'm certainly not a bull either. That's very good for emerging markets. Where you run into trouble with emerging markets, debt and equity, is when the dollar is really rallying sharply. And that's not happening. And that's one of the reasons why emerging market debt is doing fine, emerging market stocks are doing really well. And I think that is going to continue with the dollar bulls being just as disappointed as the bond bears.
Gundlach on India
My favorite stock market India that I've been touting now for years, is doing great this year, emerging markets broadly are doing great this year, European stock markets are doing fine this year emerging markets the EEM is doing really really well this year. I love it when something has underperformed for a very long time like EEM and then starts to quietly start outperforming. It's really a great time because you're not catching a falling knife you've got a very cheap valuation and its already sort of working with a tailwind.
Gundlach on Chipotle
I continue to think Chipotle is a good short. I've been short it forever. Made a fortune on it. I think it's just unbelievable what the PE is and what the competition is.
Gundlach on U.S. bonds
I think it is a joke where European bond yields are. Once that policy changes, the whole thing is going to explode because there is no way rates can stay at these levels. So forget about European bonds, but U.S. bonds, I think it is a big mistake to be short them. It is fine to be owning stocks and I would diversifying into global investing at this point in time.
Gundlach on emerging markets
A dollar being sideways, which is my view. I'm not a bear on the dollar, but I'm certainly not a bull either. That's very good for emerging markets. Where you run into trouble with emerging markets debt and equity is when the dollar is really rallying sharply. That's not happening and that's why the reasons why emerging market debt is doing fine. Emerging market stocks are doing very well. I think that's going to continue with the dollar bulls being just as disappointed as the bond bears, which both of those trades are equally crowded.
Gundlach on Europe easing
I think it's getting to the point where the inflation surprise index is sky rocketing and the GDP isn't really that bad anymore. And just the deflation argument in Europe, it just isn't there anymore. And so, I think, by the middle of this year you are going to be hearing rhetoric about reducing that support program. So the support for the sovereign bonds could be reduced. Probably not eliminated, but reduced here in 2017.
Gundlach on the relentless market
I am surprised with the relentless nature of it, with very little setback whatsoever. I mean, it is typical for the market to rally in the aftermath of an election, when a new president comes in. But the hope that is supporting the market seems really fairly incredible. When you think about the fear that a Trump presidency was attached to prior to the election and how massively that changed.
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, and CNBC World, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to more than 385 million homes worldwide, including more than 94 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.