Jeffrey Gundlach has recently called those who bought the bonds tied to inflation (TIPS), in the years after the financial crisis - "people are badly mistaken" - on AMarkets materials.
However, Gundlach has recently changed his mind and believes that bonds rising in price against the background of rising inflation, are becoming more attractive. DoubleLine Capital boss is convinced that TIPS - a great option for long-term portfolio. Gundlach himself has not yet buying TIPS - he expects that they are slightly prosyadut in price in the coming weeks. And even then he will buy them. Jeffrey suggests paying attention to the 5-year Treasuries expiry, no less. The greater the likelihood that the Fed will increase rates in the foreseeable future, the more likely that inflation will rise. So bonds that are protected from price increases - quite a pragmatic choice.
