DoubleLine Capital’s Jeffrey Gundlach, CEO of the company, says that American exceptionalism is coming to an end.
The billionaire Bond King says in a CNBC interview that over the past two decades foreign investors invested in US assets with great enthusiasm, resulting in massive capital flows to the tune tens and trillions of US dollars.
Gundlach now says that he is seeing signs of foreign investors pulling capital from US markets and putting it into the euro or European equity. The hedge fund executive believes that the reversed flows indicate a shift in investor sentiment.
Foreigners were “extremely enthusiastic and almost euphoric” about purchasing dollar-denominated assets in the last 18 years. More than $25 trillion was invested on US financial markets. This is more money invested by the US in other markets.
This is a huge increase. By one measure, it went from $3 trillion up to $28 trillion. This may be changing, which is why I believe that the US’s outperformance trend is ending. And I mean over for real…
For dollar investors, I have been recommending Europe. If you owned the [European] Index in Euros and got the currency conversion, then you were just printing money.
“I believe that this trade is only just beginning.”
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The post Jeffrey Gundlach, ‘Bondking’ warns of US outperformance trend over ‘For real’ and says investors in one region are printing money right now may be updated as new information becomes available.
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