EddieJayonCrypto
23 Jun 25
Jeffrey Gundlach, CEO of DoubleLine Capital, states that the era of American exceptionalism is ending as foreign investors are withdrawing capital from US markets in favor of the euro and European equities. Over the past 18 years, more than $25 trillion was invested in US financial markets by foreig...
Jeffrey Gundlach, CEO of DoubleLine Capital, declares that American exceptionalism is coming to an end as foreign investors redirect capital from US markets to Europe. Over the past 18 years, foreign investment in US financial markets soared to over $25 trillion, but this trend is now reversing. Gundlach highlights that European indices have recently outperformed US indices, especially when gains from favorable currency movements are considered.
In a recent CNBC interview, the renowned “Bond King” observed that foreign investors were once “downright enthusiastic” about buying dollar assets, causing massive capital inflows into the US. However, he notes a shift where these investors are pulling money out of US assets in favor of European investments denominated in euros. Gundlach believes this marks a new era with Europe taking the lead in market performance.
He advises investors to consider Europe in its local currency, emphasizing that currency translation benefits enhance returns significantly. Gundlach asserts that this realignment is only beginning, signaling a foundational change in global investment flows. This pivot could reshape market leadership for the foreseeable future.