- Manager questions effectiveness of central banks in tweets
- Negative rates, share buybacks also challenged by Gross
Billionaire bond manager Bill Gross says estimates that China’s economy is growing at 6 percent a year are among the “investor delusions that one day will be exposed to fresh air.”
Gross made the comment in a tweet after the International Monetary Fund raised its outlook for growth in China to 6.5 percent this year and 6.2 percent in 2017, an increase of 0.2 percentage points, according to a report Tuesday.
Gross, whose $1.3 billion Janus Global Unconstrained Bond Fund has returned 2.2 percent this year, also challenged the effectiveness of central bank models relying on negative-interest rates; the ability of companies to increase earnings without share buybacks and the impact of tax revisions on productivity growth, according to a series of tweets posted Tuesday by Janus Capital Group Inc.
Another idea disputed by Gross, 71: “Demographics don’t matter because they move too slowly.”