It was hard to lose money in 2019.
The S&P 500 returned 29%, emerging-market stocks gained 15%, oil increased 34%, gold swelled by 19%, and US bonds climbed 8.7% in aggregate.
Still, many experts say it's unlikely that investors will reap similarly broad-based returns across asset classes in 2020.
But Jeffrey Gundlach, the CEO and chief investment officer of the $140 billion investment firm DoubleLine Capital, sees opportunities on the horizon — and a simple theme ties them all together: a weaker US dollar.
"It seems like it's just about time for the dollar to weaken," he said on a recent webcast.
Gundlach is adamant that the US dollar will depreciate for three main reasons: foreigners starting to divest from the US, the Federal Reserve's continued insistence upon printing money, and a blown-out budget deficit.
Below is a chart depicting the relationship between the US dollar and current account and budget balance of the US. According to Gundlach, the dollar — with a lag — is historically highly correlated to the movement in the twin deficits (the brown line). This leads him to believe that a weaker US dollar (black line) is on the horizon.
With the prospect of a weaker U...