From Fortune Magazine:

Bill Gross co-founded PIMCO in 1971 and ran the Total Return Bond Fund from 1987-2014. By 2013, the fund had nearly $500 billion in assets and Gross was known as “the nation’s most prominent bond investor”. Gross has since retired, and now prefers investing in the equity market over bonds.

Gross believes the multi-decade bond bull market is over. Bonds saw the worst year in history in 2022, suffering from the Fed’s rate hikes. Although most experts believe interest rates are set to fall in 2024, Gross predicts another year of losses for bonds, as Treasury yields are unlikely to drop significantly.

Gross warned that stocks aren’t cheap in 2024 due to high price to earnings (PE) ratios, and political and geopolitical risks. However, he suggested remaining cautious and conservative but investing in companies with relatively safe dividends, such as Master Limited Partnerships that operate oil and natural gas pipelines, like Sunoco.



Read more: ‘Bond King’ Bill Gross prefers ‘dabbling in the equity market’ over bonds