The End of an Era?
Billionaire investor Jeffrey Gundlach, nicknamed the “Bond King,” believes the long-running trend of the US market outperforming others is finally over. He claims this shift is driven by a significant change in foreign investment patterns.
Capital Flight from the US?
For nearly two decades, foreign investors poured trillions of dollars into US assets. Gundlach estimates this inflow exceeded $25 trillion, far surpassing US investment abroad. However, he’s now seeing a reversal, with investors moving money away from US markets and into Europe.
Europe: The New Hot Spot?
Gundlach points to the euro and European equities as the beneficiaries of this capital shift. He argues that for US-based investors, investing in Europe, particularly when considering currency exchange, is currently highly profitable. He even claims it’s like “printing money.” He believes this trend is just beginning.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct your own thorough research before making any investment decisions.
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