Jeffrey Gundlach, a well-known equity and commodity trader nicknamed “The King of Bonds,” told CNBC on Wednesday that investors should focus on European and emerging markets. He believes the U.S. dollar is weakening.
Gundlach explained, “The S&P 500 has almost returned to its previous high, but the dollar keeps falling even though interest rates have been rising.” He said this situation is different from what has happened in the past and supports his long-held view. “When trouble comes, the dollar will not be a safe haven. Instead, the dollar will decline.”
He advised investors to look beyond the U.S. market. “I favor non-U.S. markets,” Gundlach said. “Germany, India, and possibly Mexico are good options for investment, especially for money that used to be invested in the S&P 500.”
