Bill Gross Warns All Financial Markets Increasingly at Risk

Investors should be wary as low interest rates, aging populations and global warming inhibit real
economic growth and intensify headwinds facing financial markets, according to Bill Gross. “Don’t be mesmerized by the blue skies,” said Gross. “All markets are increasingly at risk.” Stocks have recently traded near record highs, even as the U.S. economy is expected to grow just 2.2 percent this year and 2.3 percent in 2018, according to data compiled by Bloomberg. “Capitalism’s arteries are now clogged or even blocked by secular forces, which when combined with low/negative yielding ‘safe’ assets promise to stunt U.S. and global growth far below historical norms,” Gross wrote. Current market risk is the highest since before the September 2008 collapse of Lehman Brothers Holdings Inc., Gross said last week at the Bloomberg Invest New York summit. Read more about Gross’s warning of highest market risk since 2008 crisis His $2 billion Janus Henderson Global Unconstrained Bond Fund returned about 1.4 percent this year through June 9, trailing 79 percent of its peers, according to data compiled by Bloomberg. It has returned 5.6 percent since Gross took over management of the unconstrained fund on Oct. 6, 2014, after his ouster from Pacific Investment Management Co.

Source: Bloomberg pro terminal

Trader Bozhidar Arabadzhiev