Gundlach Warns Higher Rates Could Trigger Crisis, Advises T-Bill and Chill Strategy

Jeffrey Gundlach advises "T-Bill and Chill" as the best strategy amid higher interest rates that could trigger a crisis.

Gundlach warns the current federal deficit is "unsustainable" with high rates, and could cause the next financial crisis.

As U.S. borrowing surges, interest payments are becoming the largest federal expense, doubling since 2015.

Gundlach says investors should buy short-term bonds with yields around 8% rather than hold cash.

Gundlach predicted the 2007 housing crisis and sees rates falling 200 basis points as a recession hits in early 2023.