PIMCO's Co-CIO and Bonds Chairman was on Bloomberg to discuss his outlook for the stock and bond markets. He also discussed his views on the US Economy in 2013 and provided his views on fiscal cliff negotiations and their impacts on the market.
SUMMARY:
-- Stocks and bonds will return less than 5% in 2013.
-- Unemployment will stay at 7.5% or higher.
-- Commodities - Gold will go up. Oil will be above $100.
-- Fiscal cliff is real. We are going over the fiscal cliff. Next battle ground will be the debt ceiling discussions. All these will keep the markets uncertain.
-- His suggestion to Congress: stop kicking the can down the road and start seriously thinking of how to cut the deficit. Congress does not even recognize that it has $60 trillion worth of obligations and they will have to start working on cutting the entitlements along with increasing the taxes.
Credit and Source: Bloomberg
Here is the video:
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