Jeffrey Gundlach, chief executive of DoubleLine Capital, said that he has been selectively shorting shares in some restaurants, airlines and retailers.
He told CNBC that economic growth is sub-par and that continues to be reflected in certain names in the Standard & Poor's 500 Index.
He said that there are pockets of momentum in the stock market right now.
Gundlach, whose firm has more than $100 billion in assets under management, said he's shorting consumer discretionary stocks in the current environment. He explained that while that sector has risen in recent years, it's a "bad story" right now to invest in.
Gundlach declined to name individual companies.
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