Investors Gather 'Round To Hear A Story From Uncle Jeff

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Shockingly, this one is not entitled "Baa Baa Black Restraining Device" or “Humping Dumpty.”

Displaying characteristic skepticism, he said the expectations built into markets are hard to believe: from the S&P 500 being like Old King Cole, who was inexplicably a merry old soul, to Europeans trying to get inflation up as fast as they can like Pat-a-Cake, Pat-a-Cake, Baker’s Man, and interest rates being like London Bridge, just falling down.

“I was given the title ‘The Fed, the Future and your portfolio,’ and I changed the title to ‘Humpty Dumpty,’” he said, predicting the European Central Bank would have difficulty using quantitative easing to keep Europe together, with Greece still unstable….

Gold hasn’t been in vogue investors of late, he said he was bullish and added to his positions in the last few weeks. “The triple short [bearish] gold miners ETF was like the ‘Crooked man, who had a crooked house,’” he said. “It just seems crooked you would be in the right trade…but because of the rebalancing you must be right quickly.”

Oil prices were like ‘Pop! goes the Weasel,’ he added, because it caught investors off guard like a jack-in-the-box, suddenly presenting the risk that there are companies out there on the edge of bankruptcy.

DoubeLine’s Gundlach Likens Markets To Nursery Rhymes [WSJ MoneyBeat blog]

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