Gundlach Touts Gold as Haven from 'Feverish' US Stock Market
The DoubleLine Capital CEO warns of a speculative mania in equities and advises investors to allocate to real assets amid growing market froth.
Influential investor and DoubleLine Capital CEO Jeffrey Gundlach has issued a stark warning on the state of the U.S. stock market, labeling it “incredibly speculative” and a “feverish” environment while championing gold as a primary safe-haven asset.
His comments come as investors grapple with a market that has continued to climb, prompting debates about whether valuations have become detached from fundamentals. Gundlach, often referred to as the ‘Bond King,’ described the current U.S. market as "among the least healthy" he has witnessed in his career, cautioning that the speculative enthusiasm for technologies like artificial intelligence echoes historical market manias that ultimately proved unsustainable.
Amid this backdrop, Gundlach has pointed investors toward tangible assets. "Gold has evolved into a genuine asset class, attracting real money for its intrinsic value," Gundlach stated in remarks reported by Benzinga. He emphasized that the precious metal has moved beyond its traditional niche appeal to "survivalists" and is now a core holding for institutional portfolios.
The appeal of gold as a sanctuary for capital is reflected in its performance this year. The precious metal has posted a powerful year-to-date gain of over 50%, with spot prices hovering around $4,065 per ounce. This performance stands in contrast to the S&P 500, which has delivered more modest returns in 2025. While the index has seen steady monthly gains, its year-to-date performance figures, ranging from 1.6% to 14.2% according to various market trackers, highlights a significant performance gap with the precious metal.
Gundlach, who called gold his "best idea" for the year, noted that he has slightly moderated his bullish stance by trimming his recommended portfolio allocation from 25% to 15%. This adjustment suggests he believes the asset has already fulfilled a significant part of its role as a hedge, though he maintains a constructive outlook.
Beyond gold, the billionaire investor advised a defensive posture, recommending that investors hold cash and consider diversifying away from U.S. markets. He pointed to high valuations across nearly all financial assets as a reason for caution, suggesting opportunities may lie in non-US equities and non-dollar fixed income.
As market participants weigh the potential for a sustained equity rally against the risks of a sharp correction, Gundlach’s advice underscores a growing sentiment among some investors to prioritize capital preservation. The significant inflows into gold throughout the year suggest many are already heeding the call to seek refuge in assets perceived as more durable stores of value in an uncertain economic climate.