Jeffrey Gundlach Says Almost All Financial Assets Are Now Overvalued

Jeffrey Gundlach Says Almost All Financial Assets Are Now Overvalued – Odd Lots

Mentioned

Bullish

GLD— Gold is now a real asset class with institutional allocation, not just for survivalists. It has been the top performing asset for the year and warrants a 15% portfolio allocation.
EM— Emerging market equities are attractive for dollar-based investors due to expected dollar weakness, with local currency emerging market stocks up approximately 25% year-to-date.
EUROPE— European equities benefit from dollar weakness versus the euro, providing additional returns for US-based investors.

Bearish

TLT— Long-term Treasury bonds are unattractive due to deficit spending concerns, rising interest expense problems, and expectations that long-term rates will increase.
PRIVATE— Private credit is the next big financial crisis with similar characteristics to the 2006 subprime mortgage crisis, including problematic marking practices.
DXY— After being 100% dollar-focused for decades, a paradigm shift suggests the dollar will weaken going forward.
AI— AI stocks are in a mania similar to electricity stocks in 1911, with excessive pricing that historically peaks well before broad adoption.
MREIT— Mortgage REITs face risk from potential government intervention that could compress mortgage spreads by buying agency MBS to drive yields closer to Treasury yields.

Not investment advice.