New Bond King: Entering "Capital Preservation" Mode, Risk Exposure Cut to "Historical Lows"; "Fed Rate Hikes, US Recession, US Debt Soft Default" All Possible

Wallstreetcn
2026.03.28 05:12
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Gundlach warns: the 40-year bond yield downtrend has ended; as US debt approaches $40 trillion, long-term rates will rise even in a recession, and the US even faces a "soft default" restructuring risk of mandatory coupon changes. His recommendation: dump US stocks and shift to emerging market equities, diversify into short-term fixed income, cash, and commodities, and wait for a buying opportunity after the bubble bursts