Imperceptibly, the developed world's manufacturing base was gradually eroding and being replaced by securitized finance that destroyed itself and nearly its economies in 2008. Bill Gross More Quotes by Bill Gross More Quotes From Bill Gross Zero destroys existing business models such as life insurance company balance sheets and pension funds, which in turn are expected to use the proceeds to pay benefits for an aging boomer society, these assumed liabilities were based on the assumption that a balanced portfolio of stocks and bonds would return 7-8 percent over the long term. Bill Gross business But like (former Fed chairman Paul) Volcker recognized in 1979, the time has come for a new thesis that restores the savings function to developed economies that permit liability based business models to survive – if only on a shoestring – and that ultimately leads to rejuvenated private investment, which is the essence of a healthy economy, near term pain? Yes. Long term gain? Almost certainly. Get off zero now! Bill Gross business Do central bankers not observe that Detroit, Puerto Rico, and soon Chicago, Illinois cannot meet their promised liabilities? Bill Gross business That, of course, is a stretch of some accountant's or actuary's imagination. Bill Gross business Cash or better yet' near cash' such as 1-2 year corporate bonds are my best idea of appropriate risks/reward investments, the reward is not much, but as Will Rogers once said during the Great Depression –. Bill Gross most-read-articles It is demand that must be increased – yes, China must move more quickly to a consumer-based economy but the developed world must play its part by abandoning its destructive emphasis on fiscal austerity, and begin to replace its rapidly decaying infrastructure that has been delayed for decades. Bill Gross most-read-articles They should, but their September meeting language must be so careful, that 'one and done' represents an increasing possibility - at least for the next six months, the Fed is beginning to recognize that 6 years of zero bound interest rates have negative influences on the real economy - it destroys historical business models essential to capitalism such as pension funds, insurance companies, and the willingness to save money itself. If savings wither then so too does its Siamese Twin - investment - and with it, long-term productivity, the decline of which we have seen not just in the U.S. but worldwide. Bill Gross company-news I was trying to stick to my knitting, and China wasn't really my knitting. Bill Gross company-news Old Mutual is an 'old friend' that always had faith in me at Pimco and now has expressed confidence in me at Janus. They will get our best efforts and sincere thanks for the opportunity. Bill Gross company-news A purchase of Treasuries and a sale of Bunds allows for not only a potential capital gain if the spread narrows, but a yield pickup while the Rip Van Winkle investor potentially waits for a probable outcome. Bill Gross business For some reason still unbeknownst to me they didn't think that was a good idea and they did fire me, in the last few weeks, it blindsided me; I had no idea that an executive committee could fire a founder and the titular leader of the company. Bill Gross company-news With the dollar strengthening and oil prices declining, it is hard to see even the Fed raising short rates until late in 2015, if at all. Bill Gross business Be prepared for low returns in almost all asset categories. Bill Gross business Aside from the United States, the growth outlook for developed countries and many emerging ones is subpar, do not look, therefore, for economic growth to be the magic elixir for 2015. Bill Gross business TIPS look great, to not buy a TIP at 1.5 percent breakeven is to suggest that the Fed simply can't reach their objective, that they can't print enough money. I think they can. Bill Gross company-news I don't forecast a bear market in bonds. Bill Gross company-news My expectation would be 2 percent fed funds is the final destination. Bill Gross company-news It has been a nursery rhyme experience for sure, but more than likely without a fairy tale ending. Bill Gross company-news Bonds as an asset class will always be needed, and not just by insurance companies and pension funds but by aging boomers. Bill Gross insurance will always aging Americans now know that housing prices can go down and they can go down by 10, 20, 30, and in some cases, 40 or 50 percent. We know they can go down. But five years ago, we thought they could only go up. Bill Gross down thought go know
