"Jeffrey Gundlach, founder and CEO of DoubleLine Capital, has delivered a striking assessment of the current investment landscape, arguing the U.S. equity market is engulfed in a "mania" while simultaneously identifying gold as the primary refuge, elevating the metal to the status of a "real asset class." The "Bond King" told Bloomberg's Odd Lots podcast on Monday the U.S. equity market is "among the least healthy" he's seen in his entire career."
"Against the backdrop of high financial asset valuations, Gundlach has shifted his focus toward hard assets, specifically championing gold. He noted he has been "very, very bullish on gold" and it was his "number one best idea for this year." Gundlach said he believes gold has cemented its place in serious portfolios because it's now treated as a "real asset class." Crucially, the demand for gold is no longer limited to "survivalists" or "crazy speculators." Instead, people are allocating "real money"
The U.S. equity market exhibits extreme overvaluation across classic metrics such as price-to-earnings and market-cap ratios. Valuation measures are described as off the charts, representing one of the least healthy market conditions observed. Mania-level enthusiasm for technologies like artificial intelligence has rapidly priced in future benefits, mirroring past tech manias. Momentum-driven speculation can drive asset prices to insanely high levels before sharp corrections. Allocation interest has shifted toward hard assets, with gold positioned as a primary refuge and increasingly treated as a bona fide real asset class.
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