Difficult to generate much return, argues Bill Gross

By Prieur du Plessis, on November 1st, 2011 posted in: Investment, Markets, Money Leave your comment

Tweet

Email

Print This Post

Bill Gross, co-founder and co-CIO of PIMCO, has just produced the new edition of his monthly Investment Outlook newsletter, again dealing with slow growth and sub-par returns.

Here is a summary:

• Once interest rates inch close to zero and discounted future cash flows are elevated in price, it’s difficult to generate much more return if economic growth doesn’t follow.
• Equity markets should be dominated by dividend yields and the return of capital via share buybacks, as opposed to growth.
• In fixed income assets, we suggest that portfolios should avoid longer dated issues where inflation premiums dominate performance.

Click here for the full article.

Sources: Bill Gross, PIMCO – Investment Outlook, October 2011.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.