Jeffrey Gundlach and Jim Bianco Talk Tariff Turbulence

DoubleLine Deputy CIO Jeffrey Sherman moderates a discussion on April 2, coinciding with President Donald Trump’s announcement of reciprocal tariffs, between DoubleLine CEO-CIO Jeffrey Gundlach and Bianco Research President Jim Bianco, who delve into the implications of the tariffs and broader economic trends. The discussion was held as part of a DoubleLine client event in Austin. Mr. Gundlach emphasizes the market’s mixed reactions to the tariff announcement, noting fluctuations in stock and bond markets and the potential inflationary impact. Mr. Bianco highlights the challenges faced by the American workforce, particularly those without college degrees, and the potential benefits of rebalancing trade to bring back manufacturing jobs. Both speakers explore the complexities of the tariff policy, including its regressive nature and role as leverage in international negotiations.

The discussion also touches on the shifting dynamics between the U.S. and Europe, with Mr. Gundlach noting the recent outperformance of European equities and potential for a reversal in foreign investment flows. Mr. Bianco discusses historical patterns of market capitalization and risks associated with overvalued sectors. They both emphasize the importance of diversification and cautious investing in the face of market volatility. Mr. Gundlach recommends diversifying outside the U.S., particularly into European markets and commodities, and considering nuclear power and uranium stocks as long-term investments. Mr. Bianco advises focusing on sectors with solid growth potential, such as financials and industrials, and stresses the importance of managing risk and maintaining a long-term perspective.