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Laguna Beach, California, March 22, 2024 /PRNewswire/ — Legendary fixed income and fixed income pioneer William H. (Bill) Gross today announced a new investment outlook, “The Time Traveler.” In his latest outlook, Gross quotes the former Fed chairman. alan greenspan’s The infamous “irrational exuberance” comment that will characterize the market in 2022 and beyond. “But, as Mr. Greenspan once asked, ‘How do we know?'” Gross writes. “It’s hard to say. Investors can only gauge their own level of enthusiasm and assume it’s similar to the public. Add to that the high Shiller P/E, and the possibility of a Fed rate cut in the second half of 2024. It is also possible that the budget deficit will continue. 1 dollarThe economy will continue to be supported by a range of minus 2 trillion as far as the eye can see. ”
Photo by Mary Hurlbut/Stu News Laguna
Gross limits his investment “enthusiasm” to mastering a limited partnership pipeline that includes regional banks such as Western Midstream Partners LP (WES) and Trust Financial Corporation (TFC) He says he has done so. “MLPs have never been covered by the media and are not owned due to legal restrictions imposed by most mutual funds,” he wrote. “That, along with high oil prices, has generated an average return of 28% since 2023, with a tax-deferred yield of 9-10%.The total return over the same period is better than the S&P 500. Banks? What if you had bought them when I wrote that?” Perhaps if they had owned banks nine months ago, investors would now be happy with 27% returns and 4-5% yields. ”
But Mr. Gross is not a fan of 10-year Treasuries. “There’s too much supply,” he says. “And a 2% real interest rate means the break-even rate is 2.3% for inflation, where the nominal interest rate over 10 years is 4.3%. If inflation reaches 2.3% by the end of the year. What can you do with a 4.3% yield if (unlikely in my opinion)?” None of the new bond gurus promoting bonds for the next 12 months on CNBC understand. Bet on the negative yield curve flattening. For the economy to remain positive, it has to turn positive sooner or later. The longest one is 2 seconds, and the shortest ones are 5 seconds and 10 seconds. ”
Bill Gross’ full investment outlook for March 22, 2024 is available on his website. Website.
About Bill Gross
Bill Gross has been a pioneer in fixed income investing for over 40 years. He co-founded PIMCO in 1971 and served as Managing Director and Chief Investment Officer until joining Janus Henderson Investors in 2014. He retired in 2019 as he focused on managing his personal assets and private charitable foundation. Throughout his career, starting in 2000, he won numerous awards, including Morningstar’s “Fixed Income Manager of the Decade” in 2009 and “Fixed Income Manager of the Year” in 1998, 2000, and 2007. I am. Mr. Gross became his first portfolio manager to be hired as a fixed income analyst. He was inducted into the Association’s Hall of Fame in 1996 and received the Bond Market Association’s Distinguished Service Award in 2000. In 2011, he was awarded the Money Management Lifetime Achievement Award by Institutional Investor magazine. Mr. Gross oversees the $465 million-asset William Jeff Jennifer Gross Family Foundation, which donates up to $21 million annually to nonprofit organizations involved in humanitarian causes, health care, the arts, and education. There is. For more information or to view our investment outlook archives, please visit: https://williamhgross.com. Learn more about Mr. Gross’ philanthropy through the William Jeff Jennifer Gross Family Foundation below. https://Gross Family Foundation.com/.To order his book, “I’m Still Standing: Bond King Bill Gross and the PIMCO Express” Amazon.com.
Related Links
https://williamhgross.com
https://Gross Family Foundation.com/
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