GUNDLACH: Traders and speculators in the market should be raising cash right now

Brendan McDermid/Reuters

Jeff Gundlach, the CEO of DoubleLine Capital, on Tuesday held his quarterly "Total Return Webcast."

The big takeaways included: 

• The low volatility environment should not be seen as a "new paradigm" for the market.
• The 10-year yield is not likely to rise to 3% this year, but could top its March high near 2.575%.
• Traders and speculators in the stock market should be raising cash today. Long-term investors, however, should be able to weather a pullback in stocks.  

Here are the highlights:

What "small change" means.

DoubleLine Funds

It reflects the fact that markets have been treading water, Gundlach said, amid low levels of volatility in stock and bond indexes. 

It also reflects the fact that some people are trying to obstruct President Donald Trump's agenda as much as possible. "Small change is what they're looking for," Gundlach said. 

It's also a 1976 jazz album by Tom Waits.

"The officials in Europe continue to be drinking the Kool-Aid."

DoubleLine Funds

Federal Reserve Chair Janet Yellen is involved to a lesser extent, Gundlach said. 

Here's just how low volatility is today in the context of data since 2005.

DoubleLine Funds

This doesn't mean that low volatility will be here forever, Gundlach said. He advised investors to diversify in stocks, but not bonds. 

See the rest of the story at Business Insider