When the “Bond God” Jeffrey Gundlach speaks, yield hounds listen. And earlier this month, the preeminent income investor on the planet shared his favorite stock idea with a private audience.
I’ll share the specifics on his recommendation in a moment, including the exact “pair trade” that Gundlach likes. But first, let’s recap why we care what he says.
His Profitable Contrarian Calls
When Gundlach speaks, he often takes heat from his peers and the media because his calls run contrary to popular belief. But he’s usually right – and profitable:
- In 2007, he warned investors to get out of subprime mortgages just before the credit markets melted down.