Legendary bond investor Jeffrey Gundlach, founder of Double Line Capital, told a group of investors to be very afraid of the US stock market.
He was speaking at the Sohn Investment conference. Specifically, he told attendees to go long the iShares Emerging Markets ETF and short the S&P 500.
He argued the outperformance of passive investors in the S&P 500 and the underperformance of Emerging Markets are both cyclical — and both of those cycles are about to change.
To illustrate his point, he compared long-only equity holders to a painting by Expressionist painter Max Beckmann called "The Night," which you can check out below.
Gundlach said his "alternative name" for the painting "is portrait of US long-only equity managers."
Source: Bloomberg
Junior Trader Stefan Panteleev
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