According to Bloomberg News, Bill Gross, who was a bond king at one time, has warned in a self-published 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.
He has written in his memoir that he was forced to leave PIMCO because he had a confrontation with the chief executive officer of Allianz SE, the parent company.
Gross moved to the company, which Janus Henderson Group Plc now knows. In his book, he has acknowledged that although he made at Janus for the investors, the returns he earned were not at par with the industry standards. After that, he took responsibility for riskier attributes like managing unconstrained funds but said that perhaps he should not have agreed to the new role.
The other topics that Gross has covered in his book were related to Cathie Wood’s Ark Investment Management. Talking about cryptocurrencies, Gross stated that he has invested only a small percentage as digital assets in Bitcoin and is anticipating that it might escalate more than the S&P 500.
