Despite Wall Street Guru's Terrible Advice A Year Ago, He's Back
One year after a disastrous call to "sell everything," CNBC guru Jeff Gundlach was back on America's No. 1 financial TV channel this week with another bearish prediction.
"The market will drop 3% at a minimum sometime between now and December," Mr. Gundlach said on CNBC's Halftime Report on August 8.
The chyron flashed graphics identifying Mr. Gundlach as a five-star manager and "The New Bond King." But the CNBC interviewer this past week never asked a single question about the terrible investment advice Mr. Gundlach gave in the press almost exactly one year ago.
Mr. Gundlach had advised Barron's readers to "sell everything,", which turned out to be really bad advice for anyone who actually listened to him.
Looking back in time, anyone who followed Mr. Gundlach's advice and sold all their stocks on August 6, 2016, when Barron's published Mr. Gundlach's dire warning to sell everything, missed out on the 15% total return in the Standard & Poor's 500 that followed over the next 12 months.
American financial journalism for decades has covered Wall Street money managers like rock stars.
The financial press almost never looks back at how the predictions of these so-called gurus actually perform over the long-term in the real world.
In the real world, the S&P 500 broke its all-time high yet again this past week, hitting 2480.91 on Monday, losing ground on Tuesday, Wednesday and Thursday, and ending slightly up on Friday. Bellicose rhetoric between North Korea and President Trump was blamed for the volatility and the S&P 500 lost 1.4% for the week, closing at 2441.32.
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