Gundlach warns stocks don't always go up in the long run

He cites Japan's Topix index, which is down about 30% over the last three decades

Mar 13, 2019 @ 10:14 am

By Bloomberg News

Japan may hold the key to why decades-long stock rallies are not a sure bet.

Or at least so says Jeffrey Gundlach, chief investment officer at DoubleLine Capital. The billionaire money manager used the firm's Total Return Bond Fund webcast to single out Japan's equities as a cautionary tale for investors who believe that shares have to go up over long periods of time.

(More: Gundlach warns U.S. economy is floating on 'ocean of debt')

The benchmark Topix index has slumped about 30% over the three decades following the burst of Japan's bubble economy in the 1990s. That stands in stark contrast with gauges in the U.S. and Europe: The S&P 500 Index has increased tenfold over that period, while the Stoxx Europe 600 has more than quadrupled since 1989.

"People who say that stocks go up over all 30-year time frames have to look at Japan," Mr. Gundlach said.

(More: Bond titan blasts 'misguided' bet that Fed hikes are over)

0
Comments

What do you think?

View comments

Recommended next

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print