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Strategies & Market Trends : US Inflation and What To Do About It

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To: John Vosilla who wrote (825)3/14/2019 11:58:13 AM
From: RetiredNow   of 1504
 
yes, I know, thread. Today is Gundlach day, but he has such interesting things to say. Here's another great point he's made. Stocks don't always go up in the long term, especially if you are a hyper indebted nation, where interest on debt is crowding out other spending, as was the case in Japan, and as is the case with the US right now.

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Gundlach warns stocks don't always go up in the long run


Japan may hold the key to why decades-long stock rallies are not a sure bet.

Or at least so says Jeffrey Gundlach, chief investment officer at DoubleLine Capital. The billionaire money manager used the firm's Total Return Bond Fund webcast to single out Japan's equities as a cautionary tale for investors who believe that shares have to go up over long periods of time.

The benchmark Topix index has slumped about 30% over the three decades following the burst of Japan's bubble economy in the 1990s. That stands in stark contrast with gauges in the U.S. and Europe: The S&P 500 Index has increased tenfold over that period, while the Stoxx Europe 600 has more than quadrupled since 1989.

"People who say that stocks go up over all 30-year time frames have to look at Japan," Mr. Gundlach said.

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