Bill Gross Releases New Investment Outlook, 'Fundamentally Speaking'

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Jan 12, 2024, 09:00 ET

LAGUNA BEACH, Calif., Jan. 12, 2024 /PRNewswire/ -- Legendary bond and fixed income pioneer William H. (Bill) Gross today released a new Investment Outlook, "Fundamentally Speaking." In his latest Outlook, Mr. Gross writes that today's "finance-based" global economies are moving in the wrong direction, with government and private market debt levels at near all-time highs relative to GDP in the US, Japan, China, and most of Euroland. "If interest rates cannot be lowered below nominal GDP growth and fiscal deficits cannot be controlled, it will only get worse," he says.

Photo credit: Mary Hurlbut/Stu News Laguna

But today's investor in a finance-based economy has conservative choices, Mr. Gross writes: "I'm not advocating hiding away in a bomb shelter. Even Warren Buffett moved on to Apple years ago and presumably not based on book value and margin of safety considerations. But be careful. These are dangerous times – financially, geopolitically, and climatologically. These three are the market's new fundamentals."

Rather than bonds, Mr. Gross prefers oil & gas pipeline investments, regional banks, mortgage REITs, and M&A arbitrage trades: "I don't see myself as an ancient investor. I've adapted somewhat to our finance-based economy over these years. But I'm being careful. You should too, no matter how great Nvidia looks. And don't get bulled up on bonds. A 4% 10 year Treasury is no bargain in the face of $1.5 trillion deficits as far as an investor can see."

Full text of Bill Gross's January 12, 2024, Investment Outlook can be found at his website.

About Bill Gross

Bill Gross has been a pioneer in fixed income investing for more than 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 to focus on managing his personal assets and private charitable foundation. Throughout his career, he has received numerous awards, including Morningstar Fixed Income Manager of the Decade for 2000 to 2009 and Fixed Income Manager of the Year for 1998, 2000 and 2007. Mr. Gross became the first portfolio manager inducted into the Fixed Income Analysts Society's Hall of Fame in 1996 and received the Bond Market Association's Distinguished Service Award in 2000. In 2011, Institutional Investor magazine awarded him the Money Management Lifetime Achievement Award. Mr. Gross oversees the $465 million-asset William, Jeff and Jennifer Gross Family Foundation, which annually donates up to $21 million to non-profits involved in humanitarian causes, health care, arts, and education. For more information or to view Investment Outlook archives, please visit https://williamhgross.com. For information about Mr. Gross's philanthropic activities through the William, Jeff and Jennifer Gross Family Foundation, please visit https://grossfamilyfoundation.com/. Order his book "I'm Still Standing: Bond King Bill Gross and the PIMCO Express" on Amazon.com.