Jeffrey Gundlach sees an economic downturn on the horizon, but he also sees an opportunity emerging for income investors.
Gundlach, founder of DoubleLine Capital, sees interest rates falling as the U.S. economy moves into a recession in the first part of 2024 .
However, investors seeking income may do well to step out a little further on the yield curve, rather than hiding in 6-month Treasury bills and cash-like investments.
Investors in holdings that are too short-dated may find themselves exposed to reinvestment risk as rates decline.
He said investors could buy "the entire yield curve at this point."
Persons:
Jeffrey Gundlach, Gundlach, Stanley Druckenmiller's
Organizations:
DoubleLine
Locations:
U.S