On November 20, 2018, Jeffrey Gundlach said investors should put capital preservation first as inflationary pressure continued to build, warning that corporate bonds and Treasuries were not attractive in the current market.
The DoubleLine Capital chief, widely known on Wall Street as the Bond King, said investors had not rushed into Treasuries even as U.S. stocks were falling. In a telephone interview, he said: “There’s no bond rally,” Gundlach said. “Obviously, it is not a deflationary bear market, otherwise you would have a bond rally.”
Gundlach’s comments came against a backdrop of rising concern about inflation and a weak tone in risk assets. His view was that investors should protect capital rather than chase returns in fixed income.
Reporting by Jennifer Ablan; Editing by Leslie Adler
