Stocks and other assets are priced at unrealistic levels based on the outlook for global growth, according to billionaire bond guru Bill Gross.
"Equity markets are priced for too much hope, high yield bond markets for too much growth, and all asset prices elevated to artificial levels that only a model driven, historically biased investor would believe could lead to returns resembling the past six years."
President Donald Trump said during his campaign that he would revive U.S. growth to 3 percent or more, which helped fuel a surge in stocks after his election. The S&P 500 Index was still up almost 10 percent through Wednesday since his surprise victory, even after retreating about 2 percent from its March.
He also mentions in an interview that he does not believe that the Fed will reduce its balance in bond purchases during the economy stimulating program.
He predicts future profitability lower than previous years about 4-5%.
Source: Bloomberg
Junior Trader Stefan Panteleev
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