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GUNDLACH: 'It's rare that I'm in full agreement with Larry Summers'

Feb 20, 2015, 02:17 IST

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Jeff Gundlach says the Fed is 'philosophically' raising rates (Think Advisor)

Bond guru Jeff Gundlach suggests, "Interest rates are rising, because [the price of] oil has stabilized." He continued, "We better hope we don't get to $10 oil, because that means something is very, very deflationary."

Gundlach also believes the Fed is "philosophically" raising rates "and perhaps at just the wrong time."

"It's rare that I'm in full agreement with Larry Summers, but he says raise rates cautiously," said Gundlach. And that's the bond expert's thinking today, as well.

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The government should bailout millennials (Noah Smith for Bloomberg View)

Heavy student debt loads have forced many millennials to move in with their parents and delay having children. The lasting impact of these loans will make it more difficult for millennials to have a comfortable lifestyle and save for retirement.

Noah Smith notes in order to help out the millennials, "The government now can borrow at very low interest rates -- near zero, in fact. That is much lower than the rates on student-loan debt. So the government could write down some of the millennials' debt, or let them more easily wipe out debt in bankruptcy, and it could replace those obligations with its own, cheaper debt."

A look at the coming generational transfer of wealth (Wealth Management)

Baby boomers will leave behind an estimated $30 billion to their heirs over the next 30 years. Wealth Management suggests, "Advisors who position themselves to retain assets during a transfer will likely find that their firm is much more appealing to buyers than a firm that's made no such effort."

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One suggestion is to "facilitate conversations between Baby Boomers and their heirs to help both sides better understand each other's needs and goals. Those conversations and estate planning services can serve as a way to introduce the advisor and firm to the heirs."

'Fund manager' fakes his own death, defrauds investors of $1 million (MainStreet)

The Securities and Exchange Commission has accused Moazzam "Mark" Malik of concocting a scheme to defraud almost $1 million from investors.

According to the complaint, "Malik claimed to be operating a hedge fund open to high net worth, sophisticated investors that consistently yielded high positive rates of return. Malik described ABIG to investors, somewhat nonsensically, as 'a privately held Global Investment Management firm dedicated to the individuals and institutions around the world.' Malik also claimed that ABIG had approximately $100 million in assets under management with offices at 40 Wall Street, New York, New York. In fact, Malik was then, and is now, conducting an egregious fraud."

Mr. Malik also wrote emails under the pseudo name 'Amanda Ebert,' claiming he had died.

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The Fed might not hike rates anytime soon (MarketWatch)

Wednesday's FOMC minutes shed light on a dovish Federal Reserve that may be looking to keep rates at the zero bound longer than anticipated. MarketWatch noted, "Fed members who supported an early move said they were concerned that holding rates low for too long might lead to asset bubbles. But backers of waiting longer said an early move would result in the Fed's having to cut rates back to zero afterward."

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