Latest Gundlach Interview

[txlaw]

http://www.businessinsider.com/interview-with-jeffrey-gundlach-2011-5

[Myth465]

Thanks for this long interview. I have watched about 5 interviews with this guy and am a big Fan. He is like a plan speaking better performing Bill Gross. I feel he is also much more nimble, I dont know how Gross can manage that much money.

 

All roads point to range bound markets and 7 lean years. I am going to update all my holdings and head off for the summer, watching the market these days is like watching paint dry. I wonder what will cause the next uptick.

[bargainman]

All roads point to range bound markets and 7 lean years. I am going to update all my holdings and head off for the summer, watching the market these days is like watching paint dry. I wonder what will cause the next uptick.

 

Hmm.. why wait?  Why wonder?  Range bound volatile market is perfect for selling options premium!  Just sold some puts on WFC, BRK, EBIX, and SHLD. It's a good way to earn while you wait... 

[Myth465]

Humm not a bad idea.

[sdev]

Thanks for this long interview. I have watched about 5 interviews with this guy and am a big Fan. He is like a plan speaking better performing Bill Gross. I feel he is also much more nimble, I dont know how Gross can manage that much money.

 

All roads point to range bound markets and 7 lean years. I am going to update all my holdings and head off for the summer, watching the market these days is like watching paint dry. I wonder what will cause the next uptick.

 

Ditto, big fan of Gundlach.

[valuecfa]

Thanks for this long interview. I have watched about 5 interviews with this guy and am a big Fan. He is like a plan speaking better performing Bill Gross. I feel he is also much more nimble, I dont know how Gross can manage that much money.

 

All roads point to range bound markets and 7 lean years. I am going to update all my holdings and head off for the summer, watching the market these days is like watching paint dry. I wonder what will cause the next uptick.

 

Ditto, big fan of Gundlach.

 

The guy has loads of talent, but there is something i just don't trust about him. Maybe it was the heap of dildos and porn he kept in his office, or maybe it is his arrogance. Loads of talent though.

[bargainman]

 

The guy has loads of talent, but there is something i just don't trust about him. Maybe it was the heap of dildos and porn he kept in his office, or maybe it is his arrogance. Loads of talent though.

 

Wow, i thought you were kidding!

http://dealbreaker.com/2010/01/jeffrey-gundlach-not-set-up-by-tcw-big-fan-of-dr--fellatio-series/

 

He did say in the interview that he used to be a drummer for a rock and roll band!  Oh well I guess some habits die hard.

[Kraven]

 

The guy has loads of talent, but there is something i just don't trust about him. Maybe it was the heap of dildos and porn he kept in his office, or maybe it is his arrogance. Loads of talent though.

 

Wow, i thought you were kidding!

http://dealbreaker.com/2010/01/jeffrey-gundlach-not-set-up-by-tcw-big-fan-of-dr--fellatio-series/

 

He did say in the interview that he used to be a drummer for a rock and roll band!  Oh well I guess some habits die hard.

 

He is an interesting guy to say the least.  One thing I will say about him is that he has been able to navigate through the MBS minefields seemingly with ease and with superior returns.  The large collection of porn and dildos rubbed many people the wrong way (ask the old TCW crew!), and to the extent the porn and dildos don't get you the arrogance does, but he has talent.  An iota less talent and with his baggage he would have long been out of the game.

[txlaw]

 

The guy has loads of talent, but there is something i just don't trust about him. Maybe it was the heap of dildos and porn he kept in his office, or maybe it is his arrogance. Loads of talent though.

 

Wow, i thought you were kidding!

http://dealbreaker.com/2010/01/jeffrey-gundlach-not-set-up-by-tcw-big-fan-of-dr--fellatio-series/

 

He did say in the interview that he used to be a drummer for a rock and roll band!  Oh well I guess some habits die hard.

 

Whoa.  Would not have expected that.

[Hawk4value]

Hmm.. why wait?  Why wonder?  Range bound volatile market is perfect for selling options premium!  Just sold some puts on WFC, BRK, EBIX, and SHLD. It's a good way to earn while you wait... 

 

I am not too familiar with puts and calls.  When you sell puts, is there a chance that you have to give up your shares if the price goes down past a certain level??? If not, what is the downside if any??

 

 

[RichardGibbons]

A long put gives you the right to sell shares to someone before a specified date at a specified price.  So, short puts gives someone else the right to sell you shares before a specified date at a specified price.

 

The downside of the latter is that you're taking all the downside risk, but not getting all the upside reward.  So, suppose a few weeks ago, you sold Sino-Forest (TRE.to) $17.50 puts for $1.  Your maximum profit would be $1.  However, it turns out that TRE actually fell to $4.  Now you have to buy shares for $17.50 that you can only sell for $4, so you've lost $12.50 ($17.50 - $1 - $4) in an effort to make $1.

 

Thus, if you look at it from an overall portfolio view, one big loss will occasionally wipe out many profitable trades.  And, unlike long share position, you'll never get a huge gain from, say, a stock being bought out far above its current trading price, to balance the occasional loss.

 

Personally, I think this can be a bit of a trap.  Psychologically, people like a lot of small gains and often overlook the occasional big loss because it's relatively infrequent.  It's not to say that it can't be a profitable strategy, but rather that I think there's the risk with this strategy of taking credit for the gains, but mentally writing off the infrequent big losses as an aberration, and not giving it the full mental accounting it deserves.

 

Richard