'Instead of buying low and selling high, you’re buying high and crossing your fingers'.
MarketWatch reports that as stocks continue their inexorable march deeper into uncharted territory, yet another prominent investor has joined the chorus of experts warning of a catastrophic end to the market’s hot streak.
Bill Gross, portfolio manager of the Janus Global Unconstrained Bond Fund, on Wednesday warned that the financial markets are at their most vulnerable since the 2008 financial crisis and investors are paying too high of a price for the risks that they are taking.
“Instead of buying low and selling high, you’re buying high and crossing your fingers,” said the bond guru, speaking at the Bloomberg Invest New York conference.
He blamed central banks’ loose monetary policies for inflating asset prices without tangible economic growth where individual savers and banks end up paying the penalty.
“Money is being pumped out into the system and money that is yielding less than nothing seeks a haven not only in bonds that are under-yielding but in stocks that are overpriced,” said Gross in a separate interview with Bloomberg TV.
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