Jeffrey Gundlach speaks at the 2019 SOHN conference in New York on May 6, 2019.
Adam Jeffery | CNBC
DoubleLine CEO Jeffrey Gundlach is investing in gold.
"I'm probably far gold," Gundlach said in an investor's webcast on Thursday. He added that his trade is based on the expectation that the dollar will complete the year lower.
When the dollar weakens, gold tends to appreciate as it becomes cheaper for investors who own other currencies.
Gold prices hit three months high in June as investors fled to safe-haven bullion among escalated trading tensions. Meanwhile, the dollar fell to an 1
The so-called Bond king listed in 2019 has been "the opposite of 2018" because gold, bitcoin, stocks and bonds all make money.
Despite the trade war, S & P 500 is still above 15% this year, while the 10-year return fell to its lowest level since 2017 this month. The benchmark return also doubled during the return on the 3-month note, reverse part of the so-called yield curve. Yield curve inversion has been a reliable downturn signal closely monitored by experts and the Federal Reserve.
Gundlach now sees a 40% to 45% chance of a recession over the next six months, and 65% in the next year. He pointed out several indicators that blink red light, including the spread between consumer confidence expectations and current conditions, which are close to all-time low.
The leader also alerted the "high" US deficit, which could get "much, much worse in the next downturn." He noted that despite low prices, US debt interest is expected as a percentage of GDP to hit a record .
Gundlach, a respected market forecast, monitors $ 130 billion of assets under management at DoubleLine, according to the website.  A conversation he made in May to exploit the volatility of the bond market has returned more than 20%.