Bond guru Jeffrey Gundlach says he doesn’t see another “Lost Decade” for stocks, and his bond-focused firm may even be adding some stock funds to its offerings.
“Equities may be challenged in the near term,” Gundlach said at the Bloomberg Markets 50 Summit. “But I doubt you’re going to have this lost decade or lost 15 years of equities again.”
Gundlach says equities are a “superior” investment to fixed-income as an inflation hedge, according to Bloomberg. He also likes that stocks have been unpopular with investors. “I look for investments that are cheap, I look for things that are down,” he said. “I’m not interested in buying things that are on generational highs.”
Right now, Gundlach doesn’t think the S&P 500 is cheap, Bloomberg reports, but he thinks Chinese stocks are offering better value.