Investing to beat the coming blow up in the bond markets and you are not going to get a warning first!

It’s instructive to read that legendary bond investor Jeffrey Gundlach is predicting a blow up in global bond markets in a lengthy interview on Bloomberg this weekend (click here).

You don’t need to be a genius to spot the greatest boom of several centuries in bonds. Interest rates paid on bonds are at an all-time low, so that means the value of the bonds that pay them is at an all-time high.

Gundlach, who correctly predicted the subprime mortgage disaster, has a proven record as a prognosticator — and the performance numbers to go with it. At his former firm, TCW Group Inc., his Total Return Bond Fund earned an annual average of 7.9 percent in the decade ended in November 2009, according to data compiled by Bloomberg.

His flagship $35.8 billion DoubleLine Total Return Bond Fund (DBLTX) gained an annual average of 13.2 percent from its inception in April 2010 through Nov. 28, topping the performance of Gundlach’s more famous neighbor to the south, Bill Gross.

The Bond Bubble

….read more HERE