Bill Gross was on CNBC recently expressing his views on the economy, and the current investment environment.
Bill Gross’s bio from Pimco.com:
Bill Gross is a founder of PIMCO, managing director and co-CIO in the Newport Beach office. PIMCO manages more than $1 trillion(no typo there) of fixed income securities. He is the author of numerous articles on the bond market, as well as the book Everything You’ve Heard About Investing Is Wrong! , published in and Bill Gross on Investing. He appears frequently in national publications and media. Among the awards he has received, Morningstar named Mr. Gross and his investment team FixedIncome Manager of the Decade for 2000-2009 and Fixed Income Manager of the Year for 1998, 2000, and 2007 (the first three-time recipient of Manager of the Year). In 2000, Mr. Gross received the Bond Market Association’s Distinguished Service Award. In 1996, he became the first portfolio manager inducted into the Fixed Income Analysts Society’s hall of fame for his major contributions to the advancement of fixed income analysis and portfolio management. In a survey conducted by Pensions and Investments magazine in 1993, Mr. Gross was recognized by his peers as the most influential authority on the bond market in the U.S. He has 40 years of investment experience and holds an MBA from the Anderson School of Management at the University of California, Los Angeles. He received his undergraduate degree from Duke University.
Bill Gross said there are “no stocks for the long run”. Bill Gross has been talking about “the new normal” for quite some time. This is a period of sluggish economic growth, high unemployment, and low returns on equities. Gross describes the old normal as a period in which stocks returned close to double digits per annum.
However, Gross who usually is biased towards bonds admits that bonds do not offer an attractive return due to the extremely low yield environment we are in. Since bonds and stocks will both provide low returns it will be very hard to invest and achieve high returns.
Gross thinks that investors should be looking outside the United States. He talks about both developed economies like Canada, and Australia and emerging countries in Asia.
Gross talked a bit about quantitative easing which he predicts will happen. Gross believes that the Fed might be successful in this regard but only time will tell. Gross says that he owns some big blue chip stocks with high dividends like Johnson and Johnson, and Proctor and Gamble.
Gross seemingly has joined a growing chorus of investors like Warren Buffett who believe are stocks are better investment than bonds.
If the Fed is successful Gross expects stocks to offer attractive returns. Gross interestingly stated that he believes that stocks are more attractive than bonds if there is any ray of hope in the economy. It is interesting to hear Gross who manages $1 trillion in bonds to actually state stocks might be a better option.
Gross was asked if he would take over as Treasury Secretary and immediately said that there is no chance of this happening. Gross recommended Robert Reich as a good candidate to replace Larry Summers.
The video is below:
Disclosure: Long JNJ
http://www.valuewalk.com/
Bill Gross’s bio from Pimco.com:
Bill Gross is a founder of PIMCO, managing director and co-CIO in the Newport Beach office. PIMCO manages more than $1 trillion(no typo there) of fixed income securities. He is the author of numerous articles on the bond market, as well as the book Everything You’ve Heard About Investing Is Wrong! , published in and Bill Gross on Investing. He appears frequently in national publications and media. Among the awards he has received, Morningstar named Mr. Gross and his investment team FixedIncome Manager of the Decade for 2000-2009 and Fixed Income Manager of the Year for 1998, 2000, and 2007 (the first three-time recipient of Manager of the Year). In 2000, Mr. Gross received the Bond Market Association’s Distinguished Service Award. In 1996, he became the first portfolio manager inducted into the Fixed Income Analysts Society’s hall of fame for his major contributions to the advancement of fixed income analysis and portfolio management. In a survey conducted by Pensions and Investments magazine in 1993, Mr. Gross was recognized by his peers as the most influential authority on the bond market in the U.S. He has 40 years of investment experience and holds an MBA from the Anderson School of Management at the University of California, Los Angeles. He received his undergraduate degree from Duke University.
Bill Gross said there are “no stocks for the long run”. Bill Gross has been talking about “the new normal” for quite some time. This is a period of sluggish economic growth, high unemployment, and low returns on equities. Gross describes the old normal as a period in which stocks returned close to double digits per annum.
However, Gross who usually is biased towards bonds admits that bonds do not offer an attractive return due to the extremely low yield environment we are in. Since bonds and stocks will both provide low returns it will be very hard to invest and achieve high returns.
Gross thinks that investors should be looking outside the United States. He talks about both developed economies like Canada, and Australia and emerging countries in Asia.
Gross talked a bit about quantitative easing which he predicts will happen. Gross believes that the Fed might be successful in this regard but only time will tell. Gross says that he owns some big blue chip stocks with high dividends like Johnson and Johnson, and Proctor and Gamble.
Gross seemingly has joined a growing chorus of investors like Warren Buffett who believe are stocks are better investment than bonds.
If the Fed is successful Gross expects stocks to offer attractive returns. Gross interestingly stated that he believes that stocks are more attractive than bonds if there is any ray of hope in the economy. It is interesting to hear Gross who manages $1 trillion in bonds to actually state stocks might be a better option.
Gross was asked if he would take over as Treasury Secretary and immediately said that there is no chance of this happening. Gross recommended Robert Reich as a good candidate to replace Larry Summers.
The video is below:
Disclosure: Long JNJ
http://www.valuewalk.com/
