Trump announces trade deal with EU following months of negotiations
Investing.com -- DoubleLine Capital’s Jeffrey Gundlach stated that America’s debt burden and interest expense have become "untenable," meaning long-term US Treasury bonds are no longer seen as legitimate risk-free investments.
"There’s an awareness now that the long-term Treasury bond is not a legitimate flight-to-quality asset," the veteran bond manager said Wednesday at the Bloomberg Global Credit Forum in Los Angeles. He warned that a "reckoning is coming."
Gundlach suggested investors should consider increasing allocations to non-dollar-based holdings, noting that DoubleLine has begun introducing foreign currencies into its funds.
The bond manager also discussed gold’s attractiveness, stretched market valuations, the state of private credit, artificial intelligence, and long-term investment opportunities in India during his wide-ranging interview.
DoubleLine, along with peers including Pacific Investment Management Co. and TCW Group Inc., has been avoiding the longest-dated US government bonds. These firms prefer shorter maturities that carry less interest-rate risk amid growing federal debt and deficits.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.