Bond King Jeff Gundlach warns of ‘disturbing’ inflation, ‘anti-dollar’ trend in US markets — what he likes as protection

DoubleLine Capital

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The record inflation Americans faced in the summer of 2022 may now feel like a thing of the past. But DoubleLine Capital founder Jeffrey Gundlach — widely known as the “Bond King” — warns that price pressures could resurface.

In a recent CNBC interview, Gundlach pointed to what he called “a remarkable divergence of views” at the Federal Reserve.

The Fed cut its benchmark interest rate by 25 basis points at last month’s meeting. But projections vary widely [2]: while the median Federal Open Market Committee member expects two more quarter-point cuts this year, one projects a full 1.25 percentage points of easing — five quarter-point cuts in total.

“I think that’s a little disturbing for the inflation outlook,” Gundlach said. He added that if President Donald Trump replaces Fed chair Jerome Powell with someone more willing to follow his push for steeper rate cuts, the U.S. could end up “running a more inflationary policy.”

As a result, Gundlach believes there’s “risk of higher inflation” ahead — and he sees trouble brewing for the dollar as well.

Few would dispute the U.S. dollar’s role as the world’s dominant reserve currency. Yet, 2025 has been brutal for the greenback: the U.S. Dollar Index — which measures the value of the dollar relative to a basket of major foreign currencies — tumbled 10.8% in the first half of the year, marking its worst performance since 1973, when Richard Nixon was president [3].

“I just think that the dollar is going to be continuing to decline,” Gundlach said, noting a “big anti-dollar theme” running through markets.

And while the U.S. stock market has notched new highs lately, Gundlach remains unconvinced.

“I don’t really like U.S. stocks as a dollar-based investor,” he said. “I’ve felt that way all year and I continue to feel that way.”

The silver lining? Gundlach also sees assets that can offer protection.

For Gundlach, one asset stands out.

“I still think gold serves a purpose in portfolios,” he said, adding that a sizeable allocation makes sense. “I still think a 25% type of weighting [in gold] in portfolios is not excessive. Because I think that is an insurance policy and it’s in a winning mode because of the weaker dollar — and I believe that’s going to continue.”

Given his warning about inflation, the call is hardly surprising. Gold has long been considered a hedge against rising prices and currency weakness — unlike fiat money, it can’t be created at will by central banks.

The metal’s recent performance supports his case. Over the past 12 months, gold has jumped more than 40%. And Gundlach expects the rally to continue: “I think almost certainly gold will close above $4,000 [an ounce] before the end of this year.”

Read more: Here are 5 simple ways to grow rich with real estate — whether you have $10 or $100,000 to invest

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.

And, when you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.

Gundlach also sees opportunity beyond U.S. borders.

“A lot of my perfect portfolio concepts revolve around a weaker dollar, so foreign stocks — European stocks — make sense. I think some Asian stocks, ex-China, would make sense,” he said.

He added that he avoids China because “there’s too much tension with China,” making the risk-reward tradeoff less attractive.

So far, the regions he favors have delivered solid results. For instance, the Vanguard FTSE Europe ETF (VGK) is up 28% year to date [4], while the iShares MSCI Emerging Markets Asia ETF (EEMA) has posted a similar 29% gain [5].

For investors looking to diversify internationally, such ETFs could offer a starting point for further research.

Gold isn’t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.

When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.

Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by 49%, reflecting strong demand and limited housing supply [6].

Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).

The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today.

One option is Homeshares, which gives access to the $30-plus trillion U.S. home equity market — a space that has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, accredited investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

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[1]. @DoubleLineCapital. YouTube post on Sept. 18, 2025

[2]. Federal Reserve. “Summary of economic projections”

[3]. Business Insider. “The dollar posted its worst first-half performance since Nixon was president”

[4]. Vanguard. “Vanguard FTSE Europe ETF”

[5]. iShares. “iShares MSCI emerging markets Asia ETF”

[6]. S&P Global. “S&P Cotality Case-Shiller U.S. National Home Price NSA Index”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.