Bill Gross predicts value outperforms growth, based on rates correlationJuly 14, 2020
Bill Gross Favors Value Stocks, Says Best Days Behind GrowthJuly 14, 2020
July 14, 2020
Retired bond fund manager says outperformance of growth stocks over value stocks in past few years was largely driven by the slump in inflation-adjusted bond yields
Bill Gross says the dominance of Amazon, Microsoft and other technology giants throughout this year’s stock-market slump and recovery won’t last if inflation-adjusted bond yields rebound from their record low.
In his latest market outlook, the former head and founder of bond fund manager Pimco argued the tight-knit relationship between inflation-adjusted yields and the performance of stocks with rapidly expanding earnings was a key reason why highflying tech companies and other growth stocks extended their dominance over value shares in 2020.