Gundlach Sees Room for Rate Cuts Despite High Inflation, Recommends 30% Stocks Allocation

• PCE more important than CPI for Fed after high CPI print • PCE can't rise and have Fed talking rate cuts • 2-year yield signals 100bps of cuts over 2 years • Gundlach recommends 30% allocation to stocks - 10% Japan, 10% India, 10% US • Gundlach currently 25% in cash, ready for cheaper stocks