The money to be made is in non-U.S. markets, according to Jeffrey Gundlach. For long-term investors, he recommends a specific ETF.
That ETF is INDA, the iShares fund that tracks the Indian equity market. He singled out India because of the growth of its workforce and its tradition of education and technology.
“It could go up 1,000% in the next 20 years,” Gundlach said, “just like China did.” INDA is up 32% year-to-date and carries an expense ratio of 0.71%.
Gundlach is the founder and chief investment officer of Los Angeles-based DoubleLine Capital. He spoke at the Schwab IMPACT conference on November 16. His talk was titled, “2017: At the Home Stretch.”
I’ll go over what he said about the global economy and why he believes emerging markets are a compelling opportunity, along with some “insane” developments in various asset classes.
The global landscape
This has been a very easy year for investors, he said, with no volatility in bonds, although short rates have gone up. The S&P is up 17%, but he said investors would actually have been unlucky to have over-allocated to it, since some of the emerging markets have performed better.