During his annual “Just Markets” webcast last month, DoubleLine Capital chief investment officer Jeffrey Gundlach called the growth of U.S. national debt a “horrific situation,” likening it to “every household in America maxing out three $5,000 credit cards.” This according to an article in Bloomberg.
Here are some other insights Gundlach offered during the webcast:
- Some recession indicators, such as junk bond spreads, consumer expectations and homebuilder confidence, are “flashing yellow;”
- If the U.S. dollar weakens, emerging market stocks will beat the S&P 500, Gundlach said, adding that it’s time to invest in EM “relativistically;”
- He considers Europe a “value trap;”
- Bitcoin, Gundlach contends, could reach $5,000 this year, but “it’s not for the faint of heart;”
- With regard to the bond market, Gundlach argued that it’s probably “still in a long-term yield uptrend despite a recent rally.”
- This year, investors should focus on companies with strong balance sheets. “That’s going to be the way to survive the zigzags in 2019,” he said.