Bill Gross (PIMCO): “Normal” Economic Growth Impossible Now


 

Bill Gross: “Normal” Economic
Growth Impossible Now


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.

Money Morning.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s