Gundlach also mentioned taking advantages of any dips in the U.S. Treasury market, especially 10-year U.S. Treasuries. Gundlach noted he had been buying 10-year Treasuries when the yield hit 2% a few weeks ago, which he said "represent reasonable value." The Fed is explicitly supporting the U.S. Treasury market, via QE, and that should keep the lid on interest rates for the time being. With yields so low, investors are scrambling for yield any place they can get it to obtain income. While it might not make sense to buy bank stocks or tech stocks that have high yields, it could make sense to buy companies like Campbell's Soup ( CPB) or Kraft ( KFT) for income. Touching on his Japan trade -- Gundlach advised going long the Nikkei and short the yen late in 2012 -- he noted that Japanese stocks, which are still down 45% from their highs of 1989, represent a better value now than U.S. stocks, and the long-term trend is in favor of Japanese stocks. "I think you're better off for the rest of 2013 if you own Japanese stocks," Gundlach said. While he wouldn't say when it would happen, Gundlach does think that eventually something will go wrong with quantitative easing, comparing it to a high school chemistry experiment that eventually goes wrong. Fiscal policies such as the recent tax hikes and sequestration could add up causing problems down the road, and when that happens it's going to be very bad for the U.S. economy. "When you try to push problems into future, you increase the severity of problem," Gundlach said, noting that is exactly what the Fed is doing with quantitative easing.