Gross Says Due to Lingering Inflation Investors Might Think Twice

Gross Says Due to Lingering Inflation Investors Might Think Twice

According to Bloomberg News, Bill Gross, who was a bond king at one time, has warned in a selfpublished book that investors must be cautious and not expect much in returns. The book has details about a wide array of subjects, including how he had to exit from Pacific Investment Management Co.

What’s in the memoir?

In the memoir, Gross said that inflation would likely persist amid escalating government debt in the memoir. The memoir is titled, ‘Still Standing’. He has also said the 2% target of the Federal Reserve is illusionary. He has also told that the yields on 10-year Treasuries may become twice in the following decades unless the Federal Reserve continues to buy the bonds.

US consumer prices surged 7.5% in January. This is the fastest ever in the last four decades, leading to rare losses simultaneously for the bonds and stocks. A Bloomberg index that tracks 60-40 portfolios of bonds and stocks has dropped by 6.7% in the current year, leading to the worst return annually since 2008.

Bloomberg News reports that Gross was the co-founder of Newport Beach, California-based PIMCO in 1971 and surged to its zenith in the financial world after making it grow to a fixed-income giant. In 2014, he decided to exit the firm following differences with the other executives.

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