As for his skepticism surrounding what many investors consider blue-chip names, most notably those in the consumer staples sector, Gundlach advises caution, warning that in many cases the companies may not have the fundamentals to support those high dividend yields.
"They may look attractive on the surface, but these stocks have been hiding places. The fundamentals are not necessarily that strong. We try to invest in companies where the fundamentals are strong and we think that will be rewarded," says Gundlach.
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