Jeffrey Gundlach will speak at the 2019 Sohn Conference held in New York on May 6th, 2019.
Adam Jeffrey | CNBC
Doubleline Capital CEO Jeffrey Gundlach said on Tuesday that international stocks will continue to outperform US stocks, which lie behind what he believes is a secular downtrend in the dollar.
“I think this transaction isn’t about not owning US stocks, but about owning stocks in other parts of the world. It certainly works,” Gundlach said in an investor’s webcast. “I think the dollar is here for now [a] Secular decline. ”
Gundlach, who managed around $95 billion at the end of 2024, said that if the greenback on foreign currency and international stocks drops, dollar-based investors buying foreign stocks can enjoy “double barrel winds.”
The dollar weakened in 2025 as Trump’s aggressive trade policy depleted feelings about US assets and sparked a reassessment of greenback’s dominant role in global commerce. The Ice US Dollar Index has dropped by around 8% this year.
“I think it would be totally wise to invest in some emerging market countries. I would still choose India as a long-term retention there,” Gundrach said. “But it’s not a problem with certain Southeast Asian countries, or perhaps even Mexico and Latin America.”
A widely followed investor noted that growing geopolitical tensions could prevent foreigners who invest in the US from committing additional capital, creating another tailwind for international markets.
“If it’s reversed, there are a lot of sales that could happen. This is one of the reasons why I advocate for US stocks,” he said.
Investors have been negative in the US market and the economy for some time, with many recession indicators beginning to “blink red.”
Gundlach predicted that the Federal Reserve will maintain interest rates at next week’s policy meeting, despite current inflation being “very low.”
He estimated that inflation is likely to end 2025 at around 3%, but acknowledged the difficulty of predicting future price pressures due to the lack of clarity in President Donald Trump’s tariff policies.
