Wilbur Ross: Long-Term Bond Bubble Getting Ready to Burst

Mar 21, 2012

Wilbur Ross (Trades, Portfolio), of WL Ross & Co., offers his perspective on banking, equities and natural gas. Long-term government debt, which has provided some of the best market returns for decades, now poses the greatest threat to portfolios, he told CNBC. "The greatest bubble that is about to burst is the 10-year and longer Treasury, because the idea that inflation is gone forever and for all time, and therefore these artificially low rates can last, is silly," he said. "I'd rather be in equities than in 10-year Treasuries." Ross also mentioned that his company has built a large stake in oil and gas company Exco Resources (XCO), a natural gas producer, where he took a board seat in March. The company has dramatically underperformed the market since the rally began in October, falling 1.6 percent over the past month and 63 percent over the past year. However, Ross likes the company's long-term story and specifically believes the natural gas business eventually will ascend as the U.S. gets more aggressive in looking to alternative energy options. Here is the video:

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