Tags: housing | parents | overrated | Gundlach

Gundlach Recommends Betting Against Housing Exchange-Traded Fund

Monday, 05 May 2014 01:52 PM

Jeffrey Gundlach, manager of the DoubleLine Total Return Bond Fund, recommended betting against an exchange-traded fund that tracks an index of homebuilders because declining affordability will reduce housing demand.

Gundlach, chief executive officer of Los-Angeles-based DoubleLine Capital LP, recommended shorting the SPDR S&P Homebuilders ETF, he said today at the 19th Annual Sohn Investment Conference in New York.

“Single-family housing is overrated,” he said, citing younger people living with their parents.

The homeownership rate in the U.S. has already dropped to the lowest level in almost 19 years as rising property prices and mortgage rates hold back demand. The share of Americans who own their homes was 64.8 percent in the first quarter, down from 65.2 percent in the previous three months, according to a Census Bureau report last month.

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Jeffrey Gundlach, manager of the DoubleLine Total Return Bond Fund, recommended betting against an exchange-traded fund that tracks an index of homebuilders because declining affordability will reduce housing demand.
housing, parents, overrated, Gundlach
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2014-52-05
Monday, 05 May 2014 01:52 PM
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