DoubleLine Capital CEO Jeffrey Gundlach said it's time for investors to buy emerging market stocks as the dollar has likely hit its top. "I do think the dollar has peaked out, ... which does suggest that investments in emerging markets like emerging market equities are probably going to be a good winner in 2023," Gundlach said Tuesday at CNBC's Financial Advisor Summit . The dollar has rallied against every major currency this year, boosted by the Federal Reserve's jumbo interest rate hikes as it battles inflation. The DXY US Dollar Currency Index is up 10% this year, but it has fallen 8% from a 20-year high of 114.78 on Sept. 28. "It's time to buy emerging market equities if you have an annual allocation switch. ... I really do think the time is right," Gundlach said. On the overall markets, Gundlach said he expects January will see some buying as investors wrap up tax loss harvesting and start to reallocate capital. "I believe we are going to start out with good returns for both stocks and bonds in January — at least in the beginning of the year — as we get a reversal of some of the selling that happened to harvest tax losses," Gundlach said. However, the so-called bond king still expects a recession will arrive next year, saying he sees signs of labor-market softening right now.