Bill Gross Releases New Investment Outlook, 'Neither a Lender Nor a Stockholder Be'

News provided by

Oct 04, 2023, 09:00 ET

LAGUNA BEACH, Calif., Oct. 4, 2023 /PRNewswire/ -- Legendary bond and fixed income investor William H. (Bill) Gross today released a new Investment Outlook, "Neither a Lender Nor a Stockholder Be." In his latest Outlook, Mr. Gross writes that he's skeptical about a return to a bull market anytime soon: "Once the Fed stops and then lowers short-term rates, we've got a bull market optimists claim. Well not so fast."

Mr. Gross doesn't believe the Federal Reserve under Jerome Powell is willing or able to lower short term rates significantly enough while confronting a future of 3% inflation. "I'd pass on stocks and bonds in terms of future total returns," Mr. Gross writes. "Best bets are arbitrage situations such as ATVI (Activision) and CPRI (Capri) that yield annualized returns of 10-20%. (ATVI should close in 2 weeks or so). Pipeline MLPs are still a favorite of mine due to their favorable partnerships tax benefits but pricewise are a little toppy due to oil prices that seem vulnerable to the downside."

Mr. Gross concludes by noting, "In any case, keep your eye on real (and nominal) 10 year Treasury rates. They need to come down a lot to validate existing forward P/E ratios. They may not."

Full text of Bill Gross's October 4, 2023, 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 $450 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.