Investors should be shifting into shunned sectors such as tobacco, banks and European stocks as fiscal stimulus and the stomach for growing deficits in the U.S. wane, according to longtime money manager Bill Gross. With an emphasis on defense, investors should consider assets that haven’t “skyrocketed on dreams of back-to-normal economic prosperity followed by even lower artificial real interest rates,” Gross, who retired last year, said in an outlook released Monday.
“There is little money to be made almost anywhere in the world — Covid 19 vaccine or no,” wrote Gross, who co-founded Pacific Investment Management Co. and later worked for Janus Henderson Group Plc.
Gross favors value stocks that pay healthy dividends, and says investors should consider using leverage to amplify returns. Central banks are unlikely to raise interest rates in the foreseeable future, lowering the risk a leverage trade would backfire, Gross said in an interview on Bloomberg television Monday. “You’ve got to lever,” he said. “You’ve got to be able to borrow.”
Bill Gross Says Investors Should Play Defense as Stimulus Ebbs, Bloomberg, Sep 15
- WTI crude oil reversed from support level 72.25 - Likely to rise to resistance…
- USDCAD reversed from support zone - Likely to rise to resistance level 1.4450 USDCAD…
- GBPCHF reversed from resistance zone - Likely to fall to support level 1.1200 GBPCHF…
- USDJPY broke resistance level 158.00 - Likely to rise to resistance level 160.00 USDJPY…
Oil prices are rising due to stronger than expected economic data from the US, the…
The cryptocurrency market experienced a decline due to speculation of tighter monetary policy. Bitcoin and…
This website uses cookies