Renowned investor and “bond king” Jeffrey Gundlach is sounding the alarm on overvalued financial assets. He advises investors to diversify their portfolios by reducing exposure to US markets and holding more cash.
Gundlach suggests that 60% of a person’s financial assets should come from equities, but stresses that this shouldn’t be concentrated in US stocks. Instead, he recommends keeping equity investments at or below 40%, with most of those funds allocated to non-US equities.
By diversifying away from the US market, investors can reduce their risk and potentially protect themselves from future losses. Gundlach’s warning comes as many experts agree that financial assets are currently overvalued, making it a timely reminder for investors to reassess their portfolios and make adjustments to ensure long-term success.
Source: https://www.marketwatch.com/story/stocks-bonds-pretty-much-everything-is-overvalued-bond-king-says-0e421a85