The Trump reflation trade has peaked, according to DoubleLine Capital CEO Jeff Gundlach.

Gundlach held a webcast on Tuesday about his firm’s asset allocation strategy, and he broadly updated clients on his thinking about markets.

If the reflation trade is over, returns from investments that were tethered to an expected boost to inflation because of President Donald Trump’s economic policies may be muted.

Gundlach sees inflation at 1.85% this year and does not think the 10-year yield will hit 3%.

Gundlach expects, amid high stock valuations, no more than a 5% gain in the S&P 500 unless sales rise.

Thanks as always to DoubleLine Funds for allowing us to run this presentation.

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