Jeffrey Gundlach, founder and chief executive of DoubleLine Capital, said commodities now offer a better long-term opportunity than stocks. In a recent CNBC interview, he said he remains cautious on equities because markets are still in a revaluation phase. He added that gold and broader commodities look more attractive after recent market swings, while stocks may need a deeper correction before they become compelling investments.
Gundlach said he is “not terribly enthusiastic” about equities based on signals from the Chicago Board Options Exchange’s Volatility Index, or VIX. The index tracks expected stock market volatility and often serves as a gauge of investor fear.
He said stocks are not yet cheap enough to attract him. He also said he wants to see the VIX rise further to signal a real washout in the stock market before equities offer better value. This view fits his broader reading of current market conditions. According to Gundlach, the market is now moving through a revaluation phase, with investors reassessing risk across major asset classes.
Recent reports on his remarks showed the same concern. Gundlach said he does not believe the current pullback has fully run its course, which suggests he still sees room for more pressure in stocks.
He pointed to a VIX reading above 40 as a sign of deeper capitulation. At the time of his comments, the VIX had risen sharply but remained below this level, leaving him unconvinced that markets had reached a true washout.
As a result, he signaled that investors may need to stay selective rather than rush back into risk assets. If volatility has not peaked, can equities truly offer value yet?
While he stayed guarded on stocks, Gundlach gave a stronger view on commodities. He said he still wants to be in commodities for the long haul and wants to maintain a gold position.
He recalled discussing gold above $4,000 last year when the metal traded well below this level. He then said he had not been enthusiastic enough because gold later rose to nearly $5,500.
Now, with gold back near what he once expected as a yearly high, he described the current level as a very good opportunity to add exposure. He extended that call to commodities more broadly.
This position reflects his view that hard assets may hold up better if inflation stays firm, growth weakens, or confidence in traditional financial assets fades. In this setting, gold serves as more than a defensive asset.
Instead, Gundlach framed gold as a strategic allocation during a period of market uncertainty. His comments placed commodities at the center of his long-term investment outlook, while stocks remain under review.
Gundlach’s commodity preference also connects with his concerns about other major asset classes. He recently pointed to the sharp rise in the two-year US Treasury yield as another reason for caution.
Higher yields can pressure equities by raising borrowing costs and making richly valued stocks less attractive. This dynamic adds another layer to his warning on risk assets.
His message did not rest on a single factor. Rather, it reflected a mix of policy uncertainty, valuation pressure, elevated volatility, and changing investor expectations. Even so, he did not call for a broad exit from markets. Instead, his remarks focused on patience, selectivity, and stronger long-term value in commodities and gold.
For now, Gundlach’s stance remains clear. He sees a better opportunity in commodities, especially gold, while he waits for a deeper stock market correction and stronger signs of capitulation in equities.
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Jeffrey Gundlach said stocks are still not cheap enough and warned that volatility may need to rise further before equities offer value. He identified gold opportunity and commodities as stronger long-term plays, while higher Treasury yields and market revaluation continue to shape investor caution.