Bill Gross on Weak Credit: Do Not Pass Go

It might sound like an oversimplification to discuss the current state of the credit markets in terms of a Monopoly game, but that’s exactly what Janus fund manager William Gross does in a recent Barron’s article. In particular, Gross compares a player’s passing of “Go” and collection of $200 as representing “new credit that is […]

Gross Talks "New Neutral"

In the aftermath of the 2008 financial crisis, bond guru Bill Gross spoke of a “New Normal” for US economic growth. Now he’s talking about the “New Neutral” for interest rates, and the impact it will have on investors.

Roundtable: Gross, Herro, Cohen And Others On What To Expect In 2015

A number of the world’s top investment strategists recently gathered for Barron’s annual roundtable to offer their thoughts on where the economy and markets are heading. David Herro, Abby Joseph Cohen, Bill Gross, and Marc Faber were among those who participated, and overall the mood was subdued. “On the whole, they expect interest rates to […]

Gross: The End Is Near

Bond guru Bill Gross says that the good times are over for investors, and is indicating that he believes the bull market will end sometime this year.

Gross: Bond Bull Is Ending

PIMCO “bond king” Bill Gross says that the bull market in bonds is ending. Gross tells Bloomberg that, without additional quantitative easing, he thinks treasury bonds will decline in yield as the economy slows, which will push credit spreads higher. He sees a 12-month period ahead where combined treasury, corporate, and high yield bonds “don’t […]

Gross on the “Credit Supernova”

In his latest Investment Outlook, PIMCO’s Bill Gross says that the U.S. is heading toward a “credit supernova”, with exponentially rising amounts of credit leading to an eventual implosion of deleveraging. Gross says that over the years, the U.S. has used more and more credit to produce less and less growth. In the early 1970s, […]

Gross’ Forecasts for 2013

PIMCO’s Bill Gross says the “New Normal” should continue in 2013, and he expects both stocks and bonds to return less than 5% for the year. Gross also sees unemployment staying at 7.5% or higher during the year, and thinks gold will rise. He also discusses the fiscal cliff bill, and says that the drawn-out, […]

Gross Talks Debt, Asset Allocation

PIMCO’s Bill Gross says that if the U.S. doesn’t reverse its big deficits and rising debt, it “could resemble Greece within a decade.” In an interview with U.S. News & World Report, Gross also says he doesn’t think the “New Normal” will end anytime soon. “Don’t think that anytime soon we’re going back to the […]

Gross Talks Stocks, Bonds, Gold & Inflation

PIMCO bond guru Bill Gross says that both stocks and bonds are a bit “bubbled” because of the Federal Reserve’s policies, but that high-quality dividend-paying stocks should perform better than bonds over the long haul. Gross tells CNBC’s Futures Now that he also thinks gold and real assets are offering good long-term protection against inflation, […]

Gross: Close the Gap, or Become Like Greece

PIMCO bond guru Bill Gross says the U.S. needs to close its “fiscal gap” quickly, or risk a Greece-like debt crisis. In his latest investment commentary, Gross says that he doesn’t think “Armageddon is … around the corner. I don’t believe in the imminent demise of the U.S. economy and its financial markets.” But, he […]

Gross: Follow the Fed and ECB

Bill Gross says PIMCO’s strategy is pretty simple: Buy what the Federal Reserve and other central banks are buying. “We continue to anticipate what the Fed is buying,” Gross recently told CNBC. “They’ve told us they will buy $40 billion to $70 billion of agency mortgages every month until the cows come home. It pays […]

Gross on the Problem with Low Interest Rates

PIMCO bond guru Bill Gross is standing by his comments that the “cult of equity is dying”, saying that near-zero interest rates are stunting lending and growth, and leading to lower returns for both stocks and bonds. “Last month’s “dying cult of equity” Investment Outlook elicited a lot of excitement, but somehow failed to impress […]

GMO: Death of Equities “Greatly Exaggerated”

Bill Gross’ claim that the cult of equities is “dead” has generated a lot of response recently, and now Jeremy Grantham’s GMO has entered the fray, countering many of Gross’ key points. “Disappointing returns from equity markets over a period of time should not be viewed as a signal of the ‘death of equities,’” Ben […]

Siegel Fires Back, Countering Gross

Wharton Professor and author Jeremy Siegel says Bill Gross’ claim that the cult of equities is “dead” and that the 6% to 7% annualized real returns for stocks over the past century were an anomaly are way off-base. Siegel says that  his analysis found that U.S. market returns were in the same range not only […]

A Gross Miscalculation?

Bill Gross’ recent argument that the cult of equities is dying included one significant flaw, Henry Blodget writes on Yahoo! Finance’s Daily Ticker. “Even brilliant people occasionally make boneheaded mistakes, and one of the world’s most prominent investors appears to have made a big one,” Blodget writes. In his recent commentary, Gross said that stocks […]

Gross: Cult of Equity “Dying”

PIMCO bond guru Bill Gross says the “cult of equity is dying”, and that future stock returns cannot be as high as they’ve been historically. In his latest investment commentary, Gross notes that stocks have gained 6.6% annualized after inflation for the last 100 years, while GDP has increased by 3.5%. Gross says a big […]

Gross: Treasury Investors Should Expect a Haircut

PIMCO bond guru Bill Gross says that Treasury bond investors are going to get a “haircut”, and that those looking to preserve their purchasing power must put their money into assets like stocks and real estate. “In the Treasury market all interest rates are on a negative basis,” Gross tells CNBC. “Risk averse investors looking […]

Gross Sees Anemic Growth for Next Decade

PIMCO bond guru Bill Gross thinks the U.S. economy will grow at a 1.5% pace over the next decade, far below its historical norm.  “Slower growth means lower returns on capital,” Gross tells Bloomberg News. “If real GDP grows at 1.5 percent, then a diversified portfolio of stocks and bonds would probably grow at 1.5 […]