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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 \u2014 widely known as the \u201cBond King\u201d \u2014 warns that price pressures could resurface.<\/p>\n<\/p>\n
In a recent CNBC interview, Gundlach pointed to what he called \u201ca remarkable divergence of views\u201d at the Federal Reserve.<\/p>\n
The Fed cut its benchmark interest rate by 25 basis points at last month\u2019s 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 \u2014 five quarter-point cuts in total.<\/p>\n
\u201cI think that\u2019s a little disturbing for the inflation outlook,\u201d 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 \u201crunning a more inflationary policy.\u201d<\/p>\n
As a result, Gundlach believes there\u2019s \u201crisk of higher inflation\u201d ahead \u2014 and he sees trouble brewing for the dollar as well.<\/p>\n
Few would dispute the U.S. dollar\u2019s role as the world\u2019s dominant reserve currency. Yet, 2025 has been brutal for the greenback: the U.S. Dollar Index \u2014 which measures the value of the dollar relative to a basket of major foreign currencies \u2014 tumbled 10.8% in the first half of the year, marking its worst performance since 1973, when Richard Nixon was president [3].<\/p>\n
\u201cI just think that the dollar is going to be continuing to decline,\u201d Gundlach said, noting a \u201cbig anti-dollar theme\u201d running through markets.<\/p>\n
And while the U.S. stock market has notched new highs lately, Gundlach remains unconvinced.<\/p>\n
\u201cI don\u2019t really like U.S. stocks as a dollar-based investor,\u201d he said. \u201cI\u2019ve felt that way all year and I continue to feel that way.\u201d<\/p>\n
The silver lining? Gundlach also sees assets that can offer protection.<\/p>\n
For Gundlach, one asset stands out.<\/p>\n
\u201cI still think gold serves a purpose in portfolios,\u201d he said, adding that a sizeable allocation makes sense. \u201cI still think a 25% type of weighting [in gold] in portfolios is not excessive. Because I think that is an insurance policy and it\u2019s in a winning mode because of the weaker dollar \u2014 and I believe that\u2019s going to continue.\u201d<\/p>\n
Given his warning about inflation, the call is hardly surprising. Gold has long been considered a hedge against rising prices and currency weakness \u2014 unlike fiat money, it can\u2019t be created at will by central banks.<\/p>\n
The metal\u2019s recent performance supports his case. Over the past 12 months, gold has jumped more than 40%. And Gundlach expects the rally to continue: \u201cI think almost certainly gold will close above $4,000 [an ounce] before the end of this year.\u201d<\/p>\n
Read more: Here are 5 simple ways to grow rich with real estate<\/a> \u2014 whether you have $10 or $100,000 to invest<\/strong><\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n 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<\/a>, making it an option for those looking to help shield their retirement funds against economic uncertainties.<\/p>\n And, when you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals<\/a> for free.<\/p>\n Gundlach also sees opportunity beyond U.S. borders.<\/p>\n \u201cA lot of my perfect portfolio concepts revolve around a weaker dollar, so foreign stocks \u2014 European stocks \u2014 make sense. I think some Asian stocks, ex-China, would make sense,\u201d he said.<\/p>\n He added that he avoids China because \u201cthere\u2019s too much tension with China,\u201d making the risk-reward tradeoff less attractive.<\/p>\n 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].<\/p>\n For investors looking to diversify internationally, such ETFs could offer a starting point for further research.<\/p>\n Gold isn\u2019t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.<\/p>\n 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.<\/p>\n 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].<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today.<\/p>\n One option is Homeshares<\/a>, which gives access to the $30-plus trillion U.S. home equity market \u2014 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<\/a> through their U.S. Home Equity Fund \u2014 without the headaches of buying, owning or managing property.<\/p>\n 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<\/a> across regional markets.<\/p>\n Another option is First National Realty Partners (FNRP)<\/a>, which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.<\/p>\n With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart<\/a>, 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.<\/p>\n Simply answer a few questions \u2014 including how much you would like to invest \u2014 to start browsing their full list of available properties<\/a>.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n At Moneywise, we consider it our responsibility to produce accurate and trustworthy content people can rely on to inform their financial decisions. We rely on vetted sources such as government data, financial records and expert interviews and highlight credible third-party reporting when appropriate.<\/p>\n We are committed to transparency and accountability, correcting errors openly and adhering to the best practices of the journalism industry. For more details, see our editorial ethics and guidelines<\/a>.<\/p>\n [1]. @DoubleLineCapital<\/a>. YouTube post on Sept. 18, 2025<\/p>\n [2]. Federal Reserve<\/a>. \u201cSummary of economic projections\u201d<\/p>\n [3]. Business Insider<\/a>. \u201cThe dollar posted its worst first-half performance since Nixon was president\u201d<\/p>\n [4]. Vanguard<\/a>. \u201cVanguard FTSE Europe ETF\u201d<\/p>\n [5]. iShares<\/a>. \u201ciShares MSCI emerging markets Asia ETF\u201d<\/p>\n