Gundlach’s Advice to Investors during 2020 Elections



Jeffrey Gundlach on next presidential elections

Jeffrey Gundlach accurately predicted Donald Trump’s victory in the 2016 elections. While talking about his prediction regarding 2020 presidential elections, he said, “It’s too early to tell.” He said the candidates at least have to come to the debate stage. He also said that there is a high possibility that no one wins the Electoral College.

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“Bizarre behavior” in 2020

Gundlach expanded on this saying that while 2016 elections struck people as being unusual, “the 2020 election will be far worse in terms of bizarre behavior.” He also mentioned that we could even see violence and maybe even riots during the elections.

Where to make money in 2020

In this context, it is going to be difficult for investors (SPY) (VOO) to make money. In such a scenario, Gundlach suggests investors go back to “something as unspectacular as two-year treasury bonds.” In terms of bonds (BND) (AGG), Gundlach has time and again mentioned that there is high-grade corporate debt. A large chunk of these bonds should be rated junk (JNK) instead of investment-grade. During a downturn, the supply of bonds will rise even further without any corresponding increase in natural buyers.

You can also read Why Jeffrey Gundlach Thinks We’re Still in a Bear Market for more on his views.


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