Odd Lots Jeffrey Gundlach Says Almost All Financial Assets Are Now Overvalued
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Nov 17, 2025 
Jeffrey Gundlach, founder and CEO of DoubleLine Capital and a renowned fixed-income investor, shares his candid views on the current financial landscape. He warns that almost all financial assets, including stocks, bonds, and private credit, are overvalued and susceptible to downturns. Gundlach stresses the importance of holding more cash and gold while advocating for a cautious approach to long-term Treasuries amid rising inflation. He also explores the risks of private credit's liquidity and volatility issues, highlighting how institutional behaviors may shift in response to fiscal stress.
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Long Rates May Rise In Next Recession
- Long-term Treasury rates have likely bottomed and could rise in the next recession instead of falling.
- Gundlach argues the secular decline in long-term rates is over and recent Fed cuts haven't pushed long yields down.
Private Credit Is A Powder Keg
- Private credit has grown into an opaque, leveraged sector with liquidity mismatches and underreported volatility.
- Gundlach warns private credit is the likely candidate for the next major financial crisis, akin to subprime in 2006.
Endowments Show Private Liquidity Strain
- Gundlach recounts Harvard's endowment liquidity spike forcing it to borrow in the bond market.
- He uses this as evidence large asset pools can lack cash despite being heavily invested in private markets.
