“Some people say it’s a good thing because it shows how confident people are,” Gundlach said. “That’s a horrible way” to extrapolate the willingness of bond market investors rolling over for issuers. The upshot is that the investment-grade corporate bond market entered 2015 at its “most overvalued level” in history.
Another interpretation that left Gundlach startled was when he heard recently that the stock market had set a record because consumer confidence reached levels not seen since June 2007. That hardly makes him eager to buy stocks and uncork champagne bottles.