• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Gold

Gundlach says this quintessential safe haven has been “shockingly stable” when compared to the inflation-fueled rally in other commodities.

Moreover, he predicts the downfall of the U.S. dollar could make the precious metal shine again.

“The dollar being firm this year has been a cap on gold, but when it heads down, gold will go up,” says the Bond King.

And because gold can’t be printed out of thin air like fiat money, it can also act as a hedge against inflation. Gundlach projects that inflation could rise to 7% in the coming months.

To capitalize on a potential gold price rally, investors can always choose to buy gold bullion itself. But investing in gold through mining stocks can also benefit in such a scenario: Barrick Gold, Newmont and Freeport-McMoRan should provide a good starting point for some research.

Find a financial adviser in minutes

Are you confident in your retirement savings? Get advice on your investment portfolio from a certified professional through WiserAdvisor. It only takes 5 minutes to connect with an adviser who puts you first.

Get Started

Silver

Gold isn’t the only precious metal Gundlach feels has been ignored, calling gold and silver together “the orphans in the commodity market.”

Silver currently trades at around $22.10 per ounce, which is more than 50% below its all-time high.

Like gold, silver can be a store of value. But it’s also more than a safe haven asset.

The highly conductive metal is widely used in the production of solar panels and is a critical component in many vehicles’ electrical control units. The industrial demand — plus the hedging properties — make silver a very interesting asset class for investors.

You can buy silver coins and bars at your local bullion shop. Meanwhile, companies like Pan American Silver, Wheaton Precious Metals and First Majestic Silver have the potential to outperform in a rising silver price environment.

Emerging market equities

The U.S. stock market has performed extremely well, with the S&P 500 more than doubling over the past five years.

But Gundlach suggests looking internationally.

“When the dollar starts to go down, you're going to see tremendous outperformance by non-U.S. stocks. Emerging markets will be a very strong performer when that happens,” he says.

He even notes that after the dot-com bust, the outperformance of U.S. equities in the middle of the 1990s “was completely reversed” and the situation “could very well happen again.”

You don’t need to travel to a foreign country to add international exposure to your portfolio. Exchange-traded funds (ETFs) such as Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG) provide a convenient way for American investors to diversify.

This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Get Started

Fine art

Gundlach is a noted collector of modern and contemporary art, with pieces by Andy Warhol and other famous names gracing his collection.

While he didn’t highlight art investing during his recent comments on the dollar, fine art is becoming a popular way to diversify because it’s a real asset with little correlation to the stock market.

Contemporary artwork has outperformed the S&P 500 by 174% over the past 25 years, according to the Citi Global Art Market chart.

And on a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.