Gundlach was interviewed by Tom Keene. Here are some of his points:

1. “The funding of retirement benefits and health care benefits will start to worsen the deficit again, starting around 2017, and we don’t really know how we are going to deal with that.”

2. Bond yields are being held down by baby boomers that are retiring and need conservative investments.

3. In 6 to 10 years government financing needs will increase and this will put pressure on interest rates.

4.High yield is completely overvalued.

5. Baby boomers selling homes to fund retirements in future years will hurt homebuilders.