Billionaire bond investor Jeffrey Gundlach, the founder and CEO of $137 billion DoubleLine Capital, says his number one conviction over several years is that the U.S. dollar will decline as a consequence of current economic policies, resulting in the U.S. losing its sole reserve currency status.
"My number one conviction looking forward a number of years — I'm not talking about the next few months at all, I'm talking about several years — is that the dollar is going to go down," Gundlach told Yahoo Finance Live in an exclusive interview on Monday afternoon.
It's Gundlach's view that the "places to be in the long-term" are emerging markets and "non-U.S entities." While Gundlach has already rotated into European equities, the investor expects to "aggressively rotate into emerging markets," but notes it's "too early for that right now."
"So the dollar is going down is another reason why ultimately — we touched on gold — I think ultimately gold is going to go a lot higher, but it's really in hibernation right now," he added.
The 61-year-old "Bond King" later highlighted that the United States' status of the global reserve currency is in jeopardy.
"[The] U.S. has enjoyed the status of sole reserve currency globally for decades, and it's an incredible benefit," Gundlach said.DoubleLine CEO Jeffrey Gundlach is interviewed during a taping of the "Wall Street Week" program on the Fox Business Network, in New York, Thursday, May 5, 2016. (AP Photo/Richard Drew)
He pointed that in the aftermath of the global coronavirus pandemic and lockdowns, China's economy has been "the strongest economy in the world by far." While U.S. GDP has "bounced back with a lot of consumption, a lot of that consumption is going to China," he added.
"That's one of the reasons why China has such a strong economy. So, what we're seeing in the United States is starting to fall behind in economic growth. That's not a new thing. That's been going on for...