Gross says intermediate and long term bonds are in the ‘trash receptacle’

William H. Gross

Repost from 9-7-2021

image of bear peaking from behind a tree“Cash has been trash for a long time but there are now new contenders for the investment garbage can. Intermediate to long-term bond funds are in that trash receptacle for sure, but will stocks follow? Earnings growth had better be double-digit-plus or else they could join the garbage truck.”

USAGOLD note: Bill Gross, the investment guru who built Pimco, is bearish on the bond market. He thinks things are likely to go south in a hurry once the Fed takes its foot off the quantitative easing accelerator – a prospect he sees as happening “sometime in mid-2022.” He asks how will markets will absorb the 60% of net Treasury Department issuance now being absorbed by the Fed. That is a question worth pondering ……

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