“I’m working on it, because I’m an investor that ultimately does believe in the system, but believes that the system itself is at risk.”
Central bankers, seeking to stimulate economies, have lowered rates below zero in Europe and Japan, driving down returns on national debt, while investors seeking higher yield have pushed up the value of other credit. Stimulus from central banks worldwide has artificially pushed up values of stocks and credit, which has made Gross cautious on such assets, he said.
Eliminating credit as an investment means “not buying stocks, not buying high-yield bonds,” Gross said. Here is a direct video link.
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