Gross Says Buy Short-Term Debt Investments Aided by Fed Guidance

Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, said investors should buy short-term Treasuries and credit securities that will be bolstered by the Federal Reserve’s intent to keep benchmark lending rates at almost zero.

“The safest pitch to swing at may not be stocks, but the asset that will soon be the nearly sole focus of central banks,” Gross wrote in his monthly investment outlook posted on Newport Beach, California-based Pimco’s website today. “Instead of QE, central bankers are shifting to forward guidance, which if reliable, allows financial markets and real economies to plan several years forward in terms of financing rates and investment returns.”