Jeffrey Gundlach discusses the most surprising things he observed in 2023. He was surprised by the continuation of the market’s momentum in consumer spending despite the high interest rates on credit cards. He also commented on the surprising drop in the commodity price complex, including the issue with the Mid-East oil and the slowing global growth. Gundlach also discussed his predictions for the 2024 presidential election, suggesting that it might go to the House of Representatives and that Joe Biden might not run again.
He suggests instead of focusing on the T Bill and “chill” strategy, which he believes is risky and not sustainable for a recession, he prefers a three-year portfolio with a yield of nearly seven and a half percent. This portfolio includes a mix of investments such as structured products, Double B and Single B bank loans, and emerging markets. Gundlach also recommends a combination of treasury bonds for their fixed interest rates and to manage credit risk. He suggests avoiding Triple C bank loans due to their high default rates and low yields. Overall, Gundlach emphasizes the importance of diversification and risk management in investment portfolios.
