Artem Voloskovets
The strategy reduces exposure to US stocks while increasing diversification and investment flexibility.
Recommended Portfolio Allocation
| Asset class | Allocation | Strategy |
| Equities | 30% | Equal-weighted US stocks |
| Bonds | 30% | High-quality and emerging-market debt |
| Commodities | 20% | Gold and diversified commodities |
| Dry powder | 20% | Liquid reserves and opportunistic investments |
| Total | 100% |
The allocation can include credit investments within the dry-powder category, meaning the full 20% is not necessarily held in cash.
Comparison With Previous Allocation
| Asset class | March 2026 | New allocation | Change |
| Equities | 40% | 30% | −10 pp |
| Bonds | 30% | 30% | 0 pp |
| Commodities / real assets | 15% | 20% | +5 pp |
| Dry powder | 15% | 20% | +5 pp |
Compared with a traditional 60/40 stock-bond portfolio, Gundlach's allocation cuts equity exposure in half and assigns 40% to commodities and flexible investments.
Fixed-Income Strategy
Gundlach has highlighted several debt instruments:
| Instrument | Indicative yield / spread |
| Emerging-market local-currency bonds | ~7% yield |
| AAA-rated CLOs | SOFR +130 bps |
| Seasoned mortgage securities | ~140 bps over Treasuries |
| 30-year US Treasuries | Preferred entry yield near 6% |
Why Gundlach Is Cutting Stocks
- AI valuations: Concentration in large technology stocks increases portfolio risk.
- Inflation: Gold and commodities provide exposure to inflation-sensitive assets.
- Bond yields: High-quality fixed income offers alternatives to equities.
- Liquidity: Dry powder provides flexibility during market corrections.
Portfolio Example: $100,000
Bottom Line
Gundlach has reduced his recommended equity allocation by 10 percentage points, increasing commodities and dry powder by 5 points each. Bonds remain at 30%.
The strategy prioritizes diversification, inflation protection and flexibility over concentrated US equity exposure.
Artem Voloskovets
