{"id":2202,"date":"2025-11-18T16:42:35","date_gmt":"2025-11-18T16:42:35","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/11\/18\/jeffrey-gundlach-dubs-stock-market-least-healthy-hes-seen-in-his-career\/"},"modified":"2025-11-18T16:42:35","modified_gmt":"2025-11-18T16:42:35","slug":"jeffrey-gundlach-dubs-stock-market-least-healthy-hes-seen-in-his-career","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/11\/18\/jeffrey-gundlach-dubs-stock-market-least-healthy-hes-seen-in-his-career\/","title":{"rendered":"Jeffrey Gundlach dubs stock market \u2018least healthy\u2019 he\u2019s seen in his career"},"content":{"rendered":"
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The US stock market has done incredibly well over the past seven months, with the S&P 500 index<\/a> currently up more than 30% versus its year-to-date low in early April.<\/p>\n

Much of this rally is attributed to enthusiasm around artificial intelligence (AI), data infrastructure, and resilient consumer spending.<\/p>\n

But Jeffrey Gundlack \u2013 the chief executive of DoubleLine Capital \u2013 isn\u2019t buying the optimism.<\/p>\n

On Bloomberg\u2019s \u201cOdd Lots<\/em>\u201d podcast recently, the veteran bond investor said the current market is \u201camong the least healthy\u201d he\u2019 seen in his decades-long career, urging investors to hold at least 20% of their portfolios in cash to brace for a potential downturn.<\/p>\n

Why Gundlach sees the stock market as unhealthy<\/h2>\n

Despite strong index performance, Gundlach believes speculative froth is distorting valuations.<\/p>\n

He pointed to AI-related stocks and data-center investments as areas of \u201cexcess,\u201d \u2013 warning that momentum-driven buying during boom cycles often ends poorly.<\/p>\n

\u201cIt\u2019s dangerously speculative,\u201d he said on the podcast, adding that many assets appear \u201cextremely overpriced.\u201d<\/p>\n

Gundlach\u2019s comments come as investors continue to pile into the high-flying US tech stocks, even as earnings multiples stretch and macro risks mount.<\/p>\n

His critique echoes broader concerns about narrow market leadership and the sustainability of AI-driven growth narratives. In short, Gundlach sees artificial intelligence as a bubble and expects an imminent burst to drag the entire stock market with it in 2026.<\/p>\n

Gundlach dubs private credit the next big crisis<\/h2>\n

Beyond equities, Jeffrey Gundlach flagged private credit<\/a> as a looming systemic risk on the podcast.<\/p>\n

The $1.7 trillion market \u2013 where nonbank lenders extend capital directly to companies \u2013 is growing rapidly, but he believes underwriting standards are deteriorating.<\/p>\n

\u201cThe next big crisis in the financial markets is going to be private credit,\u201d the veteran warned.<\/p>\n

Gundlach likened current practices to the subprime mortgage packaging of 2006, citing recent failures like Tricolor and First Brands Group as early signs of stress.<\/p>\n

The bond market expert also criticized the push to market private credit funds to retail investors \u2013 calling it a \u201cperfect mismatch\u201d given the illiquidity of the underlying assets.<\/p>\n

How Gundlach recommends allocating heading into 2026<\/h2>\n

Other than 20% in cash, Gundlach continues to favour allocating capital in gold. However, he has trimmed his recommendation for bullion as well from 25% to 15%, citing challenges in monetising bearish views.<\/p>\n

According to him, \u201cshorting junk bonds hasn\u2019t worked\u201d \u2013 underscoring the difficulty of profiting from contrarian positions in today\u2019s market.<\/p>\n

On the Bloomberg podcast, he also reiterated concerns about inflation<\/a>, particularly the impact of tariffs on import prices, which could keep price pressures elevated.<\/p>\n

Taken together, Jeffrey Gundlach\u2019s outlook suggests a cautious stance: increased cash holdings, lower exposure to speculative assets, and skepticism toward credit markets that appear increasingly fragile heading into the new year.<\/p>\n

The post Jeffrey Gundlach dubs stock market ‘least healthy’ he’s seen in his career<\/a> appeared first on Invezz<\/a><\/p>\n

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The US stock market has done incredibly well over the past seven months, with the S&P 500 index currently up more than 30% versus its year-to-date low in early April.Much of this rally is attributed to enthusiasm around artificial intelligence (AI), data infrastructure, and resilient consumer spending.But Jeffrey Gundlack \u2013 the chief executive of DoubleLine…<\/p>\n","protected":false},"author":1,"featured_media":2203,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=2202"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2202\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/2203"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=2202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=2202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=2202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}