Bill Gross, who runs the world’s biggest bond fund at
Pacific Investment Management Co., said structural distortions brought by
central bank credit expansion will limit growth and accelerate the risk of
inflation, Bloomberg reports..
Pimco favors bonds in the five-year maturity range, as well
as dividend-paying stocks that yield 3 to 4 percent and recommended that real
assets and commodities be part of an investor portfolio, Gross said in his
monthly investment outlook posted on the Newport Beach, California-based
company’s website today.
“Not suddenly, but over time, gradually higher rates of
inflation should be the result of QE policies and zero-bound yields that will
likely continue for years to come,” Gross said, referring to the Federal
Reserve’s balance sheet through debt purchases, or quantitative easing, known
as QE…..
Wait, wait…there’s more at http://www.businessweek.com/news/2012-05-01/gross-says-credit-expansion-to-create-inflation-slow-growth
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