Gundlach: U.S. Stock Market Among the “Least Healthy” of My Career

Gundlach Sounds the Alarm on U.S. Equities

Jeffrey Gundlach, the well-known “bond king” and CEO of DoubleLine Capital, has declared the current U.S. equity market “among the least healthy in my entire career.”

He points to inflated valuations, heavy speculation around AI, and structural risks in private credit as key concerns.

He also recommended a defensive tilt: no more than ~ 40% of a portfolio in equities, with increased cash and non-U.S. exposure.

Why He’s Saying This

• Classic valuation metrics — P/E ratios, CAPE, etc. — are “off the charts.”
• The AI mania, akin to the dot-com era, is building momentum that might not be sustainable.
• Private credit markets are becoming over-alloc­ated and under-regulated.
• Global signals are shifting: weak dollar, stronger non-U.S. stocks — the U.S. may no longer be the default “safe” equity market.

Options-Market Implications for Flow Traders

When a major voice in the marketplace flashes “risk” on U.S. equities, that can spark early option-flow signals.

Tickers to Monitor Via Unusual Whales

• SPY — S&P 500 ETF (broad U.S. equity exposure)
• QQQ — Nasdaq-100 ETF (tech and growth exposure)
• DIA — Dow Jones Industrial Avg ETF (blue-chip exposure)

What Flow to Watch

• Heavy put sweeps in SPY/QQQ: smart-money hedging U.S. equity downside.
• Call sweeps in non-U.S. ETFs or emerging-market equities as capital rotates.
• IV spikes in tech/growth names if AI speculation is flagged as over-priced.
• Dark-pool prints in large U.S. equities ahead of macro policy shifts.

The Bottom Line

Gundlach’s warning isn’t just a headline — it’s a signal event.
The market may not collapse tomorrow, but when someone with 40+ years in the game says equities look among the least healthy they've seen, flow traders and risk managers pay attention.

If you’re tracking the tape:

• Stay alert for early hedge/flow activity in U.S. equities.
• Watch where capital might leave (U.S.) and where it might go (non-U.S., cash, alternatives).
• Use Unusual Whales alerts to spot when the smart money moves first.

Want to keep tabs on flow like this in real time?
Sign up for a free Unusual Whales account and get access to:

• Real-time options flow alerts
• Dark-pool prints
• Sector heatmaps and rotation signals