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CNBC: Gundlach Says the Dollar is ‘Doomed’ Over the Long Term Because of Rising U.S. Deficits

CNBC: Gundlach Says the Dollar is ‘Doomed’ Over the Long Term Because of Rising U.S. Deficits

By: Christine von Liederbach
July 29, 2021
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Article By Kevin Stankiewicz in CNBC financial

DoubleLine Capital CEO Jeffrey Gundlach offered a dire long-term assessment on the U.S. dollar Thursday, telling CNBC in an interview he thinks the greenback is “doomed.”

“Ultimately, the size of our deficits — both trade deficit, which has exploded post-pandemic, and the budget deficit, which is, obviously, completely off the charts — suggest that in the intermediate term — I don’t really think this year, exactly, but in the intermediate term — the dollar is going to fall pretty substantially,” Gundlach said on “Halftime Report.”

“That’s going to be a very important dynamic, because one of the things that’s helped the bond market, without any doubt, has been foreign buying, with the interest rate differentials having favored hedged U.S. bond positions for foreign bond investors,” he added.

The so-called bond king made his remarks as the U.S. dollar index traded around 92.64 on Thursday, up about 0.25% on the session. The dollar index, which measures the world’s reserve currency against a group of six currencies, was up 3% year to date.

“When it was below about 89, we announced very publicly that we were positive on the dollar for the near term,” said Gundlach Los Angeles-based investment firm has more than $135 billion in assets under management as of March 31.

“It’s a question of what your horizon is,” Gundlach said. “In the longer term, I think the dollar … [is] doomed,” he added.

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Although the information in this commentary has been obtained from sources believed to be reliable, The Gold IRA Company does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. The Gold IRA Company will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.

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