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Wealth Strategies: Japan is where it's at - Gundlach

Wednesday, May 15, 2013 - 02:09

If you want to take advantage of cheap money and get high returns then head to Japan's stock market, according to Jeffrey Gundlach, CEO of DoubleLine Capital.

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Was bullish starting November 13 of last year on the Japanese stock market I never dreamt that would go to 151000. And above. By this time already here 2013 in fact I thought I was aggressive think you go to thirteen thousand sometime this calendar year. But you'll be very interesting to see how this thing evolves that's what investors would be focusing the big fear right now is what's happening in Japan. So does that mean Japanese equities -- track. That's the equity market most of we've been long that market ensure the yen in macro strategy. For quite some time and people ask me at thirteen 1013 1500. If so what should. I do that was your target -- this is too big of a deal to try to get cute and get -- -- if expose state law. The Japanese stock market and it just shows no signs of flagging I mean it seems every night every now and then it has a small down day. In this followed by a couple percent just like again last night. You turn on the screen there is -- over 151000. I don't know where it's headed by its certainly got a lot of momentum and there's a lot of under investment in the Japanese society. So the thing could go higher I think with the state law book we say this about the stock market. Yeah I mean the big the argument for US stock market the best argument has been it's the only game in town. You know dividend yields on certain sectors are reasonable compared bonds. Market has had good momentum and some people say this because of quantitative easing and certainly. There's ample evidence that there's a correlation between equities strength in recent quarters and qualitative easing but that's the reason why are playing the stock market. Go to Japan because that's where they're doing quality -- these in full force the United States has been. Doing qualitative easing and Paul Krugman and famously said it's all good percent to enough of it. So here comes the Bank of Japan who's doing quantitative easing two and a half times as much. Vs GPs here in the United States so they're really putting -- -- before. -- go if that's the reason you should do in stocks than on the Japanese stock market that's the one.

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Wealth Strategies: Japan is where it's at - Gundlach

Wednesday, May 15, 2013 - 02:09