Fed Should Stop Quantitative Tightening, Reduce Interest Rates Soon, Bill Gross Says
January 22, 2024
‘Bond King’ Bill Gross doubles down after calling the end of the 35-year bond bull market months ago: ‘I like dabbling in the equity market more’
January 23, 2024'Bond King' Bill Gross says stocks look overstretched - and a major recession could hit if interest rates don't drop this year
Bill Gross struck a cautious tone on the stock market, economy, and US debt this week.
The billionaire “Bond King” touted safer stocks over the high-flying “Magnificent Seven.”
The Federal Reserve needs to cut interest rates this year to avoid a serious recession, he said.
Stock valuations are stretched, a major recession is a real threat, and the US is caught in a debt spiral, Bill Gross has warned.
The billionaire cofounder of bond giant Pimco told Bloomberg on Monday that the S&P 500 trading at a record high doesn’t make sense to him. The benchmark stock index’s price-to-earnings ratio of about 19 is “much too high” when the real or inflation-adjusted interest rate today is a restrictive 1.8%, he said.
