Bill Gross: “Normal” Economic
Growth Impossible Now
By TERRY WEISS, Contributing Writer, Money Morning • February 25, 2013
Legendary market maven Bill Gross, the so-called “King of Bonds,” said investors will flat-out lose money if they continue employing the “buy and hold” strategies of the past.
In his recent Investment Outlook, Gross told investors that “financial repression, QEs of all sorts and sizes” and low interest rates will “dominate the timescape” for decades, maybe longer.
Investors must adjust to the new world order to avoid being the loser in this zero-growth environment, Gross warned.
Ultimately, Gross said, the stock market’s historical, inflation-adjusted 6.6% annual growth rate is unsustainable.
Gross, of course, is a bond man.