AMWatch

PIMCO founder says bonds are 'investment garbage' just like cash

Ontime bond king Bill Gross is talking trash about the bond market -- literally.

Bill Gross, co-founder and co-chief investment officer of Pacific Investment Management Company (PIMCO), adjusts his sunglasses as he arrives to speak at the Morningstar Investment Conference in Chicago | Photo: Jim Young/Reuters/Ritzau Scanpix

In a meandering and sometimes off-kilter investment outlook posted on his website, onetime bond king Bill Gross said longer-term Treasury yields are so low that the funds that buy them belong in the "investment garbage can."

Ten-year yields are likely to climb to 2 percent over the next 12 months, from about 1.3 percent currently, handing investors a loss of roughly 3 percent, he wrote. Stocks could also fall into the category of "trash" should earnings growth fall short of lofty expectations.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Further reading

Related articles

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch