While U.S. stocks continue to climb, Jeffrey Gundlach, chief executive of DoubleLine Capital has told investors it's a good time to take a step back from some of their stateside stock holdings and buy assets in India and Japan.
In his first investor webcast of the year, Gundlach discussed his outlook for 2017, saying that after the recent run-up in the U.S. stock markets, investors should look to "peel-off" their exposure to equities. Gundlach, known on Wall Street as the Bond King, said he expected markets to reverse their post-election moves.
He attributed this to high political uncertainties surrounding President-elect Donald Trump's policies and their impact on the U.S. economy. He warned of a sell-off around Inauguration Day on January 20.
Gundlach further highlighted that India and Japan were attractive equity investments but warned of Europe due to political risks in the continent, especially with elections due later this year in France and the Netherlands.
"It would be best to avoid European assets because of upcoming French and Dutch elections," he said.