How to Play Treasuries in Response to U.S. Deficit and Deflation Fears

Jeffrey Gundlach says the U.S.’s enormous debt load spells deflationary pressures for some time to come. That’s why he likes Treasuries.

The bad news is that the U.S. has an unsustainable debt load. The good news is investors still have options.

These were the two main takeaways from Jeffrey Gundlach’s keynote address June 23 at Morningstar’s annual investment conference in Chicago. Gundlach formerly managed some $70 billion for TCW, but recently founded his own bond shop, DoubleLine Capital, after an acrimonious parting with TCW.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.