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Bill Gross Favors T-Bills Over Stocks, Bonds as Recession Looms Large

  • Fed can raise rates to 3.5% as soon as possible, Gross says
  • Former bond king has been urging more caution in investing
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Will the US Enter a Recession?
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Bill Gross has one piece of advice for those looking to buy dips in bonds, stocks and commodities: just don’t.

The former bond king said one-year Treasury bills are a better alternative to almost any other investments, as the Federal Reserve’s interest-rate hikes lead to a “strong” possibility of recession. Gross, co-founder of bond powerhouse Pacific Investment Management Co., has been urging investors to take a cautious stance since the start of the year, a call proven prescient as stocks and fixed-income assets suffered historical losses this year.