Sell the house, sell the car, sell the kids, sell everything. That from big time bond guru Jeffery Gundlach in a recent interview.
The stock market might be bouncing around recent record highs but real economic growth is weak and by some lights getting weaker. Lies about corporate profit get bigger almost daily. If you're looking for bargains, try an old fashioned bargain basement store. There are still plenty who will site this market has much room to run and they will roll out all their last-time-this-happened data. Cheerleaders come in all shapes and sizes especially in today's PC-heavy times.
Noting the recent run-up in the benchmark Standard & Poor's 500 index while economic growth remains weak and corporate earnings are stagnant, Gundlach said stock investors have entered a “world of uber complacency.”
The S&P 500 on Friday touched an all-time high of 2,177.09, while the government reported that U.S. gross domestic product in the second quarter grew at a meager 1.2 percent rate.
“The artist Christopher Wool has a word painting, 'Sell the house, sell the car, sell the kids.' That’s exactly how I feel – sell everything. Nothing here looks good,” Gundlach said in a telephone interview.
Anybody can be right and anybody can be wrong. But being prepared, now that's another thing.
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