DoubleLine’s Gundlach says to buy international stocks on the dollar's 'secular decline'

DoubleLine Capital CEO Jeffrey Gundlach said Tuesday that planetary stocks volition proceed to outshine U.S. equities connected the backmost of what helium believes to beryllium the dollar's secular downtrend.

"I deliberation the commercialized is to not ain U.S. stocks, but to ain stocks successful the remainder of the world. It's surely working," Gundlach said successful an capitalist webcast. "The dollar is present successful what I deliberation is the opening of [a] secular decline."

Gundlach, whose steadfast managed astir $95 cardinal astatine the extremity of 2024, said dollar-based investors who bargain overseas stocks could bask "a treble barreled wind" if the greenback declines against overseas currencies and planetary equities outperform.

The dollar has weakened successful 2025 arsenic Trump's assertive commercialized policies dented sentiment toward U.S. assets and triggered a reevaluation of the greenback's ascendant relation successful planetary commerce. The ICE U.S. Dollar Index is down astir 8% this year.

"I deliberation it's perfectly sensible to put successful a fewer emerging marketplace countries, and I would inactive alternatively take India arsenic the agelong word clasp there," Gundlach said. "But there's thing incorrect with definite Southeast Asian countries, oregon possibly adjacent Mexico and Latin America."

The widely-followed capitalist noted that foreigners invested successful the United States could besides beryllium holding backmost committing further superior owed to heightened geopolitical tensions, and that could make different tailwind for planetary markets.

"If that's reversing, past there's a batch of selling that tin happen. And this is 1 of the reasons that I advocator ex U.S. stocks versus U.S. stocks," helium said.

The capitalist has been antagonistic connected the U.S. markets and system for immoderate time, saying a fig of recession indicators are starting to "blink red."

Gundlach predicted that the Federal Reserve volition enactment enactment connected involvement rates astatine its argumentation gathering adjacent week adjacent arsenic existent ostentation is "quite low."

He estimated that ostentation is apt to extremity 2025 astatine astir 3%, though helium acknowledged the trouble successful predicting aboriginal terms pressures owed to the deficiency of clarity successful President Donald Trump's tariff policy.