① Gundlach, CEO of DoubleLine Capital and the "new Bond King," has reduced his gold exposure and warned that the recent rise in gold prices has reached "astounding" levels; ② Regarding the interest rate outlook, Gundlach believes there is about a 50% chance that the Federal Reserve will cut interest rates in December; ③ In the stock market, Gundlach prefers to invest in non-US stocks and emerging market stocks.
In precious metals After a strong rally this year, DoubleLine Capital CEO and “Bond King” Gundlach has reduced his gold exposure and warned that the recent rise in gold prices has reached “astounding” levels .
Gundlach said he has reduced the proportion of gold in his portfolio to 10% , while allocating 5% of his position to a broad commodity index.
This indicates that Gundlach's view on the future of gold has changed as gold prices have risen. In mid-September of this year, he advised investors to hold a 25% position in gold.
International gold prices have been climbing steadily over the past few months, hitting a record high earlier last week, though they have since retreated significantly. Nevertheless, gold prices are still up over 50% year-to-date. Currently, spot gold is trading below $4,000, after briefly approaching $4,400 last week.
Just as Gundlach made the above remarks, the Federal Reserve announced on Wednesday that it would lower the target range for the federal funds rate by 25 basis points to between 3.75% and 4.00%, in line with market expectations. This is the Fed's second rate cut this year in 2025, and the second consecutive rate cut since September of this year.
Regarding the interest rate outlook, Gundlach believes there is about a 50% chance that the Federal Reserve will cut rates in December .
He predicts that the US inflation rate will remain above 3% throughout 2026, and the bond yield curve may face the possibility of further steepening.
Gundlach urged investors to rebalance their portfolios following the Fed’s latest easing measures, noting that global diversification and rigorous risk management will be crucial as U.S. policy shifts from tightening to neutral.
Regarding the stock market, Gundlach prefers to invest in non-US stocks and emerging market stocks . "I still like to hold some emerging market stocks denominated in local currencies, and from a valuation perspective, I really like non-US stocks," he said.
(Article source: CLS)
