Gundlach: Bet on a ‘Most Hated Asset’

Expect a rally in bonds very soon, DoubleLine Capital's Jeff Gundlach said Wednesday on CNBC.

"I think the place – the one place – that you're likely to make money in the next several weeks, maybe couple of months, is actually, believe it or not, the most hated asset on the planet: Long-term U.S. government bonds," he said. "That's what I think is going to be the most successful investment."

On "Fast Money," Gundlach, who was named "the king of bonds" by Barron's in 2011, said that he was looking to inflation – or the lack of it – as the reason bonds would do well.

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"There's no sign of inflation," he said. "When you look at the commodity market in particular, it really looks bad.

"Look at where copper is. Look at where gold is. Look at where gold is in foreign currencies. It's hitting new lows in terms of Japanese yen. It's hitting new lows in terms of the euro. It looks like it's about to hit new lows even in terms of the dollar, which has been a weak currency, so gold should be going up in dollar terms."

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Gundlach also said that he expected Federal Reserve Chairman Ben Bernanke to signal the drawdown of its quantitative easing.

"I think that the Fed is going to reduce their bond purchases later this year," he said. "I think the market expects that."

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Trader disclosure: On June 19, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long QCOM; Steve Weiss is long AIG; Steve Weiss is long MTG; Jon Najarian is long BAC; Jon Najarian is long JPM; Jon Najarian is short GLD; Jon Najarian is long VVUS; Jon Najarian is long BTU; Jon Najarian is long FNSR; Jon Najarian is long DFS; Jon Najarian is long OC; Jon Najarian is long S; Pete Najarian is long AAPL; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long MSFT; Pete Najarian is long FDX.