DoubleLine Capital CEO Jeffrey Gundlach said Wednesday that the company is doubling down on overseas investments amid a weak dollar while ramping up its commitment to commodities. The widely followed investor said he had recently turned positive on commodities overall, pointing to steady gains in the largely overlooked asset class. “Commodities are starting to move up broadly and quietly,” Gundlach said. “Last week, for the first time in a while, we turned positive on commodities in general. So I think commodity indexes have some relevance here.” His comments came after the Federal Reserve on Wednesday cut its key overnight borrowing rate by a quarter of a percentage point to a range of 3.5%-3.75%. This is the central bank’s third rate cut this year. Regarding gold in particular, Gundlach said gold is still worth having in a portfolio. Gundlach, who had about $95 billion under management at the end of 2024, recommended a 25% gold position in mid-September and reduced the allocation in late October. Mr. Gundlach’s new demands on commodities are tied to expectations for a weaker dollar. He said he believes President Donald Trump is likely to appoint a dovish Federal Reserve chairman who supports lower interest rates. The result will steepen the yield curve and weigh on the U.S. dollar, he said. This could reinforce the view that non-U.S. assets, especially emerging market bonds, have already performed well this year. “We should invest more in non-dollar assets,” Gundlach said. “I think this is an early stage where non-dollar investments are outperforming dollar investments.”
