J. Gundlach: Replace US with Emerging Markets

After the strong rise in US indices since November, taking them to new record highs, legendary investor Jeffrey Gundlach, head of the DoubleLine Capital Fund, has a tip to investors. And he is - to replace their US investments with those of the emerging markets.
Referring to US stocks, which, according to Gundlach, account for about 50 percent of world stock exchange capitalization, compared to a share of only 24 percent of global GDP, Gundlach believes US state ratings are "staggered".
For this reason, the expert offers investors to shorten the SPY index fund based on the broad  S&P 500 index and to extend the EEM, an emerging market indexed fund.
Ghundlach is not the only one with such recommendations. A survey of Bank of America Merrill Lynch in April shows that investors are leaving US markets at the fastest pace in a few decades. They prefer the markets in the eurozone and the Asian countries.
In addition, more than 44% of institutional investors like the emerging markets, which is the highest percentage in five years.
Also 83% of respondents, from the US bank, find the US market to be overvalued.
A series of factors contributed to these expectations, including the double-digit growth of US indices since the US presidential election in November.