Bill Gross Releases New Investment Outlook, ‘ Time Traveler’
March 22, 2024
Heard on the Street: An Investing Genius Meets a Stable Genius
March 28, 2024Bill Gross champions short-end bets amid AI ‘exuberance’
BY CHRIS SLOLEY
March 26, 2024
Outspoken market commentator believes ‘wonder stock’ bets have clouded less interesting but equally strong ideas.
Banks could be a compelling market towards the end of the year, while the interest in artificial intelligence (AI) is bordering on ‘irrational exuberance’, says Bill Gross.
The bond market stalwart made these comments in his latest market missive, entitled ‘Time traveller’, which looked at society and market trends that he believes would shock someone who’s just arrived from 2004.
Gross – who co-founded Pimco – believes the drop to a -1% yield on the 10-year US Treasury in 2022, which compares to a 2% yield in 2004, had underpinned the 12-fold increase in the Nasdaq, albeit aided by corporate tax rates and historically high profit margins and earnings.
