What is Jeff Gundlach's advice for investors?

Gundlach advises investors to have no more than 40% of their portfolios in stocks, with most of that outside of the U.S.

How do market analysts view the current market compared to the dotcom boom?

Analysts see the "potency of the AI narrative" driving valuations that are reminiscent of the dotcom bubble.

Home / Business and Economy / Veteran Investor Warns: Stocks Overvalued, Portfolios Should Cap at 40%

Veteran Investor Warns: Stocks Overvalued, Portfolios Should Cap at 40%

Q: What is the current state of the VIX and CNN's "Extreme Fear" indicator?

The VIX, Wall Street's "fear index," has crept higher, and CNN's "Extreme Fear" indicator points to growing unease among investors.

18 Nov

•

Summary

Veteran bond investor Jeff Gundlach says most financial assets are overvalued
Gundlach advises investors to limit stocks to 40% of their portfolios
AI-driven stock valuations compared to dotcom bubble by market analysts

Veteran Investor Warns: Stocks Overvalued, Portfolios Should Cap at 40%

As of November 18th, 2025, veteran bond investor Jeff Gundlach has sounded the alarm on the state of today's financial markets. Gundlach observes that almost all asset classes appear overvalued, and he is advising investors to limit their exposure to stocks to a maximum of 40% of their portfolios.

Gundlach's concerns are echoed by other market watchers, who see troubling signs in the current market landscape. The "potency of the AI narrative" is driving valuations that some analysts compare to the dotcom bubble of the late 1990s. Meanwhile, the VIX, Wall Street's "fear index," has crept higher, and CNN's "Extreme Fear" indicator points to growing unease among investors.