“Paper gold” ETFs are little more than speculative vehicles, Gundlach said, and buyers should be aware that holding shares doesn’t mean gold bars.
“That’s about the most bullish thing we’ve done,” he says about big hotel bets. “We are all long. No shorts, you know, betting on the country."
He kept 50% of the fund's assets in cash and parked money in gold and silver over the last two years as stocks continued their record bull run.
Most actively managed fixed-income funds also performed poorly relative to their passive indexes, including core fixed income and high yield.