Jeff Gundlach urges 30–40% in non‑US stocks amid weak dollar, high inflation

Jeffrey Gundlach, the “Bond King” and DoubleLine Capital CEO, told CNBC on Wednesday he is positioning portfolios around the risks of higher inflation and a weaker U.S. dollar and laid out his top investment recommendations. Gundlach said inflation is running at about a 3% annualized rate, above the Fed’s 2% target, and estimated that gap “translates into a 56% increase in consumer prices of a 15‑year period.” He warned that if the Fed were to cut interest rates below the rate of inflation, “that could potentially cause price growth to run even hotter,” a concern tied to market fears the Fed might cut prematurely.

On the dollar, Gundlach said the greenback “isn’t acting like a safe‑haven asset for investors anymore,” noting the U.S. Dollar Index has declined around 10% over the past year. “My central investment theme now for about two years has been center your portfolio positioning around the idea that the dollar is going to be secularly weak,” he said, adding that cutting rates would run both a weaker‑dollar and inflationary policy.

One top recommendation: hold non‑U.S. stocks in local currency, particularly in emerging markets. Gundlach advised investors to have 30%–40% of their portfolio in foreign stocks and to “avoid U.S. stocks completely,” saying he has conviction this will be a winning trade. He pointed to recent outperformance: the iShares MSCI Emerging Markets ETF is up about 42% in 12 months versus a roughly 15% gain in the S&P 500.

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