Bill Gross, the one-time bond king, warned that investors should turn cautious and trim expectations for returns, in a self-published book that covers a range of subjects including his acrimonious exit from Pacific Investment Management Co.
Inflation is likely to be persistent amid ballooning government debt, Gross, 77, wrote in the memoir titled “I’m Still Standing,” and the Federal Reserve’s 2% target is “illusionary.” Calling debt “a virus in modern-day capitalism,” Gross said yields on 10-year Treasuries may more than double over the next decades unless the Federal Reserve keeps buying bonds.
