What Are Jeffrey Gundlach’s Investment Recommendations?

On Monday, "Bond King" Jeffrey Gundlach predicted a Donald Trump victory in the 2020 U.S. presidential election despite polls pointing to a Joe Biden win. On a pre-election webcast yesterday, Gundlach offered his predictions for the post-election economy and stock markets.

Jeffrey Gundlach, an American investor and businessperson, is the founder of investment management firm DoubleLine Capital LP. He was previously headed the $9.3 billion TCW Total Return Bond Fund.

Gundlach has predicted a Donald Trump victory in the 2020 U.S. presidential election. Speaking on a webcast hosted by David Rosenberg of Rosenberg Research, Gundlach added that he has less conviction this time than in 2016, however. Gundlach also predicted that the nation could split up if Washington doesn’t deliver a substantial financial aid package.

Gundlach said, “The economy is already in tatters, but it would be a disaster…When you use such blunt instruments, like the money spray, the effects for the economy are quite uneven. There’s a big tremor but then there are aftershocks.”

DoubleLine Capital, an investment management firm founded in Dec. 2009, is a leading provider of fixed-income ETFs and mutual funds. The company manages more than $140 billion in assets.

Yesterday, Gundlach offered certain investment recommendations, consisting of allocations to stocks, bonds, and gold. Gundlach hates long-term bonds but advises investors to still own some because the nation could face deflation. He also recommended keeping cash as a hedge against deflation.

Gundlach added that investors should be protected against inflation in their portfolios. That hedge could be gold or bitcoin. He said, “And after the outperformance of U.S. equities for the past decade, emerging markets—particularly India—are a better place to put money than the U.S. or Europe, which Gundlach called bad demographics, not very well-run, and vulnerable to another Brexit-type outcome.”

Gundlach correctly predicted the housing crash in 2007 and is known for his bold calls. He's also an art collector and owns works by Mondrian, Warhol, and De Kooning. According to Forbes, Gundlach’s net worth is $2.2 billion.

Gundlach was married to Nancy Draper, a bassist in his former band, Radical Flat. In 2010, Draper filed for divorce from Gundlach after being married for about 20 years.