Jeffrey Gundlach reveals his best asset classes for 2021

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  • Jeffrey Gundlach said the US is not yet out of recession, while breaking down his favorite asset classes for 2021 during his annual Market Outlook webcast on Tuesday evening.
  • On its “like list” asset class: Asian equities, emerging market equities and US equities.
  • Gundlach also said he doesn’t “believe we’re out of the recession yet” and that this recession was one of the most unusual ever, as many typical patterns such as consumer debt ratios behaved differently than they typically would in a downturn.
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Jeffrey Gundlach said the United States is not out of the game


recession

for now and also broke down its favorite asset classes in 2021 during its annual Market Outlook webcast on Tuesday evening.

The DoubleLine Capital founder told viewers that Asian stocks were “extremely attractive” and featured high on his “likes list”. At the moment, it looks like they’re extremely hated and he thinks it’s “baseless”. He also said he likes emerging market and US stocks.

Gundlach also said he doesn’t “believe we’re out of recession yet” given the wild swings in global GDP. He added that the United States experienced “one of the most unusual recessions of all time” and that many of the typical patterns that economists would expect in a downturn behaved differently.

For example, he said that typically during major economic downturns there are high levels of distress in credit cards, student loans and other forms of debt. But in 2020, the United States has seen a “shrink” in distress, Gundlach said. He referred to a chart that tracks delinquency rates on consumer loans, and the rate has dropped in 2020.

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Gundlach attributed this to the “miracle” of the US government handing out stimulus checks. People used it to pay off their credit cards, he said, which was later attributed to falling delinquency rates

“This is one of the most unusual recessions ever due to the most unusual responses ever,” the investor said.

Gundlach predicted the US government would deliver an additional $2,000 stimulus to individuals, a hope among many investors, especially after President-elect Biden demanded trillions of dollars in new immediate fiscal support last Friday.

Gundlach Credit Card Debt Rates


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